@tjrobertson52

reportedly running ads in ChatGPT will cost about 3 times as much as running ads on Facebook or Instagram except that that's not the right comparison I'd like to talk about what people are getting wrong about this story and whether or not your business should be running ads on ChatGPT it's been reported that ChatGPT will charge on average $60 for every 1000 ad impressions this is often called your C P m

your cost for showing your ad a thousand times and on average meta ads have a CPM of 5 to 40 dollars it just depends on who you're showing your ads to so yes if we say the average CPM on metAIs $20 ChatGPT ads will be about three times as expensive but let's look at another comparison Google ads in Google ads you don't pay per impression you pay per click but yes

you can run banner ads in Google and you do pay for impression there but I'm gonna talk about Google search ads for now just like in meta ads there's a wide variance for how much you pay per click it depends on the keywords you're bidding on but the average is between two to five dollars per click and every time your ad is shown it has about a 5% chance of being

clicked so that means per impression Google ads cost four to 10 times as much as meta ads and about twice as much as ChatGPT ads are reported to cost so why would anyone run ads on Google well it's because the targeting is much more effective targeting in meta ads is primarily based on demographic and interest you're showing up in the feed of the kind of people who tend to be interested

in your product or service but you have no ideAIf they're actually in need of your product or service in Google ads you're showing up specifically when they're searching for your product or service assuming you offer the kind of product or service people know to search for this can have 10 or 20 times the conversion rate now I'm not saying one ad platform is better than the other it just depends on

your product or service is it easier to target by demographic or by search intent so now back to the original story the real question is is ChatGPT ads more like meta ads or more like Google ads well that depends on a few factors one is what percentage of the ad placements are going to be on a conversation with purchase intent if someone's using ChatGPT to clean up a passive aggressive email

to their boss it seems very unlikely that an ad placed on that conversation is going to lead to a purchase so if ChatGPT is showing ads on every search and charging you per impression then yeah I would expect a conversion rate more like meta but when someone's using ChatGPT for product recommendations I can see those ads being just as effective as Google Ads and then it'll just come down to how

good opening eyes targeting is ultimately I don't think ChatGPT ads will put a dent in Google Ads Google has 10 to 20 times the distribution and has had 20 years to develop their ad platform however if ChatGPT ads isn't immediately saturated I think it could make sense for a lot of businesses