A New Advertising Channel Just Opened in Australia
For the first time in over a decade, there is a genuinely new place to advertise online.
OpenAI has begun rolling out ads inside ChatGPT for Australian users. The expansion, announced on March 26, follows a US pilot that launched on February 9, 2026, and crossed $100 million in annualised revenue within six weeks. More than 600 advertisers have already joined the program.
This is not a future prediction. It is happening right now.
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 show up within ChatGPT conversations, integrated into the interface that millions of Australians already use daily to research products, compare services, and make purchasing decisions.
Who sees them: Only logged-in adult users on the free and Plus tiers. Users on Pro, Business, and Enterprise plans don't see ads. This means the audience skews toward individual consumers and small business owners rather than enterprise users.
What they look like: Early formats are visual, product-focused placements that appear contextually relevant to what the user is asking about. If someone asks ChatGPT "best solar installer in Melbourne," an ad from a solar company could appear alongside the AI's response.
Privacy model: OpenAI states that conversations remain private and are not used for ad targeting. Instead, targeting is based on the context of the query, similar to how Google Search ads work based on keywords rather than user profiles.
Why This Matters More Than You Think
The Numbers Are Significant
ChatGPT's Australian user base has more than doubled in the past 12 months. Globally, the platform has over 800 million weekly active users. These are not people browsing passively. They are actively asking questions, comparing options, and making decisions.
When someone types "best accounting software for Australian small 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.
This week, eMarketer released forecasts showing Meta is on track to overtake Google in total global ad revenue for the first time in 2026, with Meta reaching $243.46 billion versus Google's $239.54 billion. The combined share of Meta, Google, and Amazon now accounts for 62.3% of all global digital advertising.
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 has been reported at approximately US$60 per 1,000 impressions (CPM). That is a significant premium over standard display advertising, which typically runs $2 to $10 CPM, and even above most social media video CPMs.
However, context matters. A $60 CPM for an ad shown to someone actively asking "which CRM should I buy" is fundamentally different from a $5 CPM for a banner ad on a news website. The value depends entirely on the intent behind the impression.
For Australian advertisers, the key question will be: 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 15 other search results. Just your message alongside 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. The visual ad format that OpenAI is testing is clearly designed for product advertising.
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 new and the Australian rollout is still in its early stages. 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, not just search engines. This is the emerging discipline called Answer Engine Optimisation (AEO), and it is quickly becoming as important as traditional SEO.
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. The advertising landscape is fragmenting, and the right mix for your business in 2026 may look very different from what worked in 2024.
The question is no longer "Google or Meta?" It's "Google, Meta, ChatGPT, and what else?"
The Bigger Picture: Advertising Is Entering a New Era
The launch of ChatGPT ads in Australia is not just another platform update. It represents a fundamental shift in how advertising works.
For twenty years, digital advertising has been built on two models: search intent (Google) and social engagement (Meta). ChatGPT ads introduce a third model: conversational context. You're not targeting keywords or demographics. You're appearing inside a conversation at the moment someone is 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 Navigating the New Advertising Landscape?
At DC Groups, we manage digital advertising campaigns for Australian businesses across Google Ads, Meta, and emerging channels. We help our clients stay ahead of platform changes and allocate budgets where they'll generate the strongest returns.
If you want to understand how ChatGPT ads, AI search, and the shifting ad landscape affect your business, get in touch. We'll walk you through what's changed and what you should do about it.