OpenAI has taken a significant step in developing its advertising model: after testing CPM (cost per thousand impressions) ads, the platform is now activating CPC (cost per click) ads within ChatGPT. This strategic shift turns the chatbot into a genuine performance channel and pits OpenAI directly against Google Search.

Highlights:

  • OpenAI is testing cost per click (CPC) ads in ChatGPT, with bids ranging from $3 to $5 per click.
  • This change comes as CPM (cost per thousand impressions) prices have decreased from around $60 at launch to approximately $25 today.
  • The CPC model allows advertisers to directly compare ChatGPT's performance with other platforms like Google Search.
  • OpenAI is actively hiring its first executive responsible for ad measurement, signaling that ad revenue has become a central priority.

From CPM to CPC: Why This Change Was Inevitable

When OpenAI launched its first ads, the CPM option made sense. This model allows advertisers to be charged for every thousand impressions, making setup simpler. It does not require infrastructure for click tracking and quickly attracts brand awareness-focused advertisers, even on a platform with limited measurement capabilities.

However, CPM has its limits. Performance-focused advertisers prefer to pay for actual actions, not impressions. This segment constitutes the majority of online ad spending. Keeping these advertisers in the impression model indefinitely was not a sustainable option.

Price pressure also accelerated the process. In just ten weeks, ChatGPT's CPM has dropped from around $60 at launch to as low as $25 in some cases, and the trend is downward. When impression prices fall, the revenue generated from each impression also automatically decreases. CPC provides OpenAI with leverage for ad growth without having to artificially maintain CPMs.

How Do CPC Ads Work?

According to screenshots of the ad manager interface verified by Digiday, advertisers can now set bids ranging from $3 to $5 per click. This format coexists with the existing CPM model and is gradually rolling out through a limited version of the ad manager.

The shift to CPC fundamentally changes the relationship between OpenAI and advertisers. Advertisers now pay only when a user interacts with their ads, rather than for visibility. This allows for aligning ad spending with measurable outcomes and calculating a comparable return on investment with other channels.

As noted by Nicole Greene from Gartner, this format makes it easier for advertisers to directly compare their results on OpenAI with other major advertising platforms and reallocate their budgets to ChatGPT.

The Real Challenge: Proving the Value of a Click in a Conversational Context

Adopting CPC means entering Google's territory, and the Mountain View company has spent years perfecting this model. The bidding system is based on specific intent signals, quality scores, real-time bidding pressure, and retargeting data. As a result, advertisers obtain concrete evidence over quarters that these clicks justify their investment.

OpenAI must also provide the same guarantees. And this is where things get complicated. Not all clicks are equal. For example, the cost per click on Meta is three to five times lower than on Google Search; this does not necessarily mean that the inventory is of lower quality, as the intent behind these clicks is different. On social media, users are browsing, while on a search engine, they are looking for something specific. This intent difference justifies Google's price premium.

The question is where ChatGPT will position itself on this spectrum. OpenAI's advantage lies in the conversational nature of the platform: intent is built gradually through interactions, within the framework of guided conversations. This presents a different intent signal than classic search but potentially equally valuable.

A Rapidly Evolving Advertising Infrastructure

OpenAI is going beyond new formats to achieve its goals. The platform is building all the necessary infrastructure for a real advertising business model.

The hiring of the first executive responsible for ad measurement is the most obvious sign of this. This profile will have to create a measurement strategy from scratch for advertisers: defining how the platform's reporting attribution models, incrementality tests, media mix modeling, and geographic experiments will relate. Additionally, the hired person will work with third-party measurement providers and industry groups to help advertisers evaluate ChatGPT against other media acquisitions.

OpenAI's speed of structuring is particularly notable. In comparison, Uber Ads hired its first measurement manager in 2025, about three years after launching its advertising activities. Netflix began building its measurement team in 2023, nearly a year after starting its ads. OpenAI is accelerating at a much earlier stage in the advertising development curve.

What Changes for Advertisers?

For marketers, the activation of CPC in ChatGPT offers a pre-access opportunity to a channel with high intent potential and provides an advantage before competition drives up prices. Those who are the first to try this format will have the early advantage of understanding platform-specific performance mechanisms.

In terms of budget, CPC facilitates the integration of ChatGPT into existing media plans. Performance teams now have a familiar measurement framework to justify investments and manage campaigns. Senior analyst Claire Holubowskyj from Enders Analysis summarizes that OpenAI's CPC experience largely stems from the need to sustain advertiser demand and build trust; this is in a context where CPMs are already under pressure!