Update, October 2026
ChatGPT ads have been live in Australia since April 17, 2026, when OpenAI started its local pilot after a US test (AdNews). Ads only show to logged-in adults on the Free and Go plans, and paid plans such as Plus, Pro, Business and Enterprise stay ad-free (OpenAI). Australian advertisers can buy through partners, and since May also through OpenAI's self-serve Ads Manager beta, with cost-per-click bidding and conversion measurement through a pixel or Conversions API (Marketing-Interactive). At the end of August, OpenAI said ChatGPT ads had passed a US$1 billion annualised revenue run rate less than 200 days after launch, and Mediaweek reported that thousands of brands in Australia and New Zealand have signed up, including Kogan, Virgin Australia and Xero (Mediaweek).
A New Advertising Channel Opened in Australia in 2026
There is now a new place to advertise online, and it sits where people research and compare before they buy.
OpenAI began rolling out ads inside ChatGPT for Australian users in April 2026. The expansion was announced on March 26 and followed a US pilot that launched on February 9, 2026. At the time of the announcement, an OpenAI spokesperson said the US pilot had passed US$100 million in annualised revenue within six weeks and had more than 600 advertisers (Campaign).
Six months on, Australian businesses can apply to buy these ads directly through OpenAI's self-serve tool (see the update above).
If you run a business in Australia and spend money on digital advertising, this development deserves your attention.
How ChatGPT Ads Work
ChatGPT ads are different from anything you're used to on Google or Meta. Here's how they work:
Where they appear: Ads appear at the bottom of a ChatGPT answer when there is a relevant sponsored product or service, clearly labelled and kept separate from the answer itself (OpenAI). That puts them inside a tool many Australians already use to research products, compare services, and make purchasing decisions.
Who sees them: Only logged-in adult users on the Free and Go plans. Users on Plus, Pro, Business, and Enterprise plans don't see ads. This means the audience skews toward individual consumers and business owners rather than enterprise users.
What they look like: Ads are labelled as sponsored and matched to what the user is asking about. If someone asks ChatGPT "best solar installer in Melbourne," an ad from a solar company could appear below the AI's response.
Privacy model: OpenAI says it keeps conversations private from advertisers and never sells user data to advertisers. Ads are matched to the context of the conversation, and users can turn off ad personalisation and clear the data used for ads (OpenAI).
Why This Matters More Than You Think
The Numbers Are Significant
When it announced the Australian expansion in March 2026, OpenAI said local usage had more than doubled in the previous 12 months. Globally, Sam Altman said in October 2025 that ChatGPT had reached 800 million weekly active users. These users are actively asking questions, comparing options, and making decisions.
When someone types "best accounting software for Australian business" into ChatGPT, they are further along the buying journey than someone scrolling Instagram. This is high-intent attention, and it is now available to advertisers.
The Ad Duopoly Is Breaking
For years, digital advertising has been a two-player game: Google and Meta. That dynamic is shifting.
In April 2026, eMarketer forecast that Meta would overtake Google in global ad revenue for the first time, with Meta reaching US$243.46 billion in 2026 versus Google's US$239.54 billion. The same forecast puts the combined share of Meta, Google, and Amazon at 62.3% of worldwide digital ad spending in 2026.
But the bigger story is what's growing outside that trio. ChatGPT ads represent the first credible new entrant in the premium advertising space since TikTok. And unlike TikTok, which competes for attention during leisure time, ChatGPT competes for attention during decision-making time.
That distinction matters enormously for performance advertisers.
Early Pricing Signals
Early US test pricing was reported at roughly US$60 per 1,000 impressions (CPM), well above typical Meta CPMs. Since May 2026, advertisers can also bid per click instead of per impression (see the update above).
However, context matters. A $60 CPM for an ad shown to someone actively asking "which CRM should I buy" is fundamentally different from a cheap banner impression on a news website. The value depends on the intent behind the impression.
For Australian advertisers, the key question is: what does the cost per acquisition look like once enough data comes in? That answer will determine whether ChatGPT ads become a core channel or a niche experiment.
What This Means for Different Types of Businesses
Service Businesses (Consultants, Agencies, Professional Services)
This is potentially the highest-value segment for ChatGPT ads. When someone asks an AI "how do I choose a migration agent in Sydney" or "what should I look for in a financial planner," your ad appears at the exact moment of decision-making. No scrolling past cat videos. No competing with a full page of other search results. Just your message below the AI's answer.
E-Commerce and Retail
Product comparison queries are one of the most common uses of ChatGPT. "Best wireless earbuds under $200 in Australia" is exactly the kind of query where a well-placed ad could drive direct conversion.
Local Businesses
This is where things get interesting. As more Australians use ChatGPT instead of Google for local recommendations, businesses that are not represented in AI responses risk becoming invisible. ChatGPT ads offer a way to maintain visibility even if the AI's organic response doesn't mention your business.
B2B Companies
B2B decision-makers are heavy ChatGPT users. They use it to research vendors, compare platforms, draft RFPs, and evaluate options. Ads that appear during these workflows reach buyers in a way that LinkedIn and Google Ads often cannot.
What Australian Businesses Should Do Right Now
1. Don't Rush In, But Don't Ignore It
ChatGPT ads are still new in Australia, and OpenAI's self-serve Ads Manager is still in beta. Pricing is premium and the targeting options are limited compared to mature platforms like Google Ads or Meta. Dumping your entire budget into ChatGPT ads today would be premature.
But ignoring it completely is also a mistake. The advertisers who test early, learn the platform, and build expertise before their competitors show up will have a meaningful advantage.
2. Check Your AI Visibility First
Before you spend money on ChatGPT ads, find out what ChatGPT already says about your business organically. Open ChatGPT and ask:
- "Best [your service] in [your city]"
- "[Your brand name] reviews"
- "Compare [your product] vs [competitor]"
If ChatGPT doesn't mention you at all, ads alone won't fix that. You need a content strategy that makes your brand visible to AI systems as well as search engines. This is the emerging discipline called Answer Engine Optimisation (AEO), and it is quickly becoming as important as traditional SEO. Our SEO for Australian businesses includes content structured to be cited in AI answers.
3. Optimise Your Website for AI Readability
ChatGPT and other AI systems pull information from your website to inform their responses. If your site has clear, structured content with specific answers to common questions, FAQ schema, and authoritative information about your services, you are more likely to be cited in AI responses.
This benefits you whether or not you run ChatGPT ads.
4. Watch Your Attribution Carefully
As AI-powered search grows, traditional attribution models are breaking down. A customer might:
- Ask ChatGPT for recommendations (sees your brand)
- Search Google to verify (clicks your ad)
- Visit your website directly (converts)
In this scenario, Google Ads gets the conversion credit, but ChatGPT started the journey. Understanding these multi-touch paths will become critical as AI advertising matures.
5. Consider Your Budget Allocation
If you're currently splitting budget between Google Ads and Meta, this is a good time to review your allocation strategy. Ad spend is spreading across more platforms, and the right mix for your business in 2026 may look very different from what worked in 2024.
The question used to be "Google or Meta?" Now it's "Google, Meta, ChatGPT, and what else?"
The Bigger Picture: Advertising Is Entering a New Era
For most of the internet era, digital advertising has been built on two models: search intent (Google) and social engagement (Meta). ChatGPT ads introduce a third model: conversational context. Your ad appears inside a conversation, matched to what someone is asking at the moment they are actively thinking about a purchase.
That is a different kind of attention. And it requires a different kind of advertising strategy.
The brands that understand this shift early and adapt their approach accordingly will have a significant advantage over those who wait until ChatGPT ads become mainstream and competition drives up costs.
Need Help Planning Your Ad Mix?
Riseo manages Google Ads and Meta advertising for Australian businesses, along with emerging channels. We help our clients stay ahead of platform changes and allocate budgets where they'll generate the strongest returns. On the organic side, our social media management covers content and growth on Instagram, Facebook, LinkedIn, Xiaohongshu and WeChat.
If you want to understand how ChatGPT ads and AI search affect your business, get in touch. We'll walk you through what's changed and what you should do about it.