ChatGPT Ads for Hotels: CPC $3-$3.50, CTR 1.6-1.9%

Cogwheel Marketing has shared results from the ChatGPT Ads beta for hotels. They found that Cost Per Click benchmarks are between $3 and $3.50, with Click Through Rates ranging from 1.6% to 1.9%. OpenAI began testing these ads in the US earlier this year. Initially, there was a minimum budget of $200,000 and high CPMs. However, in May, the platform moved to a self-serve model with a performance-based CPC, eliminating the minimum spend and requiring a daily budget of $25. Ads appear after AI-generated answers, based on conversational context and relevance signals. Advertisers can choose from three objectives: Reach, Clicks, or Conversions. Targeting options include specific US and international locations, and even DMAs like San Diego. Custom audiences can also be created by uploading email and phone number lists. The optimal CPC bid for strong delivery is between $3 and $5. Anything less than $2.99 is unlikely to serve. Advertisers should also use "context hints" to guide matching, describing the types of conversations where their hotel might be relevant. Ads have limitations, including only one square image and a 50-character headline, which often gets truncated after 24 characters. This information is important for hotels looking to leverage new advertising channels.