By Jonathan Baker, with insights from Christina Botte, EGC’s Director of Social Media Advertising is entering the artificial intelligence (AI) space in a big way. Created through OpenAI’s ChatGPT platform, test ads will be run in the coming weeks (and the implications for the industry are significant). So, what will this new AI-driven advertising model look like? And, most importantly, how will it change the way brands reach audiences? Here are five key steps marketing professionals should know: 1. Ads Will Appear on ‘ChatGPT Go’ OpenAI recently announced that it plans to run test ads in the United States through a new subscription tier called ‘ChatGPT Go,’ priced at $8 per month. OpenAI will continue to offer its ad-free ‘Pro,’ ‘Business,’ and ‘Enterprise’ plans. According to a Media Post article (generated using ChatGPT itself), although paid brand messaging is being introduced, ChatGPT will not become a “pay-to-play” answer engine. In other words, ads won’t influence the model’s search outputs. 2. Answers First, Ads Second In keeping with ChatGPT’s core purpose, helpful answers will appear before any advertisements, and ads will be clearly labeled as sponsored content. This structure ensures that responses remain unbiased and focused on the user. While beneficial to users, the structure also presents a challenge for marketers: While ad placement will be visible and transparent, the opportunities to creatively integrate ads into conversations are more constrained than on traditional platforms. 3. No Data Sales, No Engagement Optimization OpenAI is positioning its advertising model with strong user privacy in mind: No conversation data will be sold to advertisers. Users can turn off personalization and clear ad-related data from their history. ChatGPT will not optimize ads based on time spent or engagement metrics, a departure from most ad-supported platforms. Paying subscribers can opt out entirely with a completely ad-free experience (which may be permanent, should they choose). These principles may make the platform more appealing to privacy-conscious users, but they also limit the traditional targeting and performance tools that marketers rely on. 4. Strong Ad Guardrails ChatGPT’s advertising ecosystem will strictly avoid sensitive topics. Ads will not appear alongside political or health-related content, and they will be invisible to users who are under 18 years old. Whether influenced by global regulatory trends (such as recent rulings in Australia restricting minors’ access to social media), this approach signals a cautious stance toward ad placement and safety. 5. Conversational and Interactive Ads Rather than passive display ads, ChatGPT aims to deliver interactive, conversational advertising experiences. This means ads may evolve in real time based on user responses, offering follow-up questions and allowing users to provide immediate feedback. The Media Post article suggests this could shift advertising from impression-driven models to guided decision-making experiences for users. Side Note for Small Businesses By removing traditional creative and production barriers, ChatGPT’s advertising model has the potential to level the playing field, especially for small and mid-sized businesses. Without the need for high-budget creative campaigns, more brands may be able to compete effectively. The Takeaway Unlike ads on social media or television, whether linear or connected, ChatGPT’s approach prioritizes user intent and experience over disruption. Brands should not feel intimidated by this new channel. Instead, they should view it as another opportunity to be discovered and remembered. Consider this insight from Christina Botte, Director of Social Media at EGC: “Early ad platforms offer room to experiment, making this an important time to test. ChatGPT’s focus on intent and context enables brands to reach users during active research and decision-making moments. It will be interesting to see how this performs compared to traditional display advertising.” Let EGC Group help you not only increase your brand’s visibility but also amplify the power of your unique message. Visit our website to learn more about our full-service marketing capabilities.
