ChatGPT Ads Underperform: Low CTR, Zero Conversions

Many agencies are finding that ChatGPT ad campaigns are not performing as expected. Peter Jaffray, a managing director at Choice OMG, invested $415 in three campaigns and received nearly 9,000 impressions. However, the click-through rate was only 0.6%, much lower than the 2% he typically sees with search ads. He estimates each click cost about $7. While the clicks were from real people, Jaffray believes the ads were not targeted effectively, leading to no interested buyers. Another CEO, Nicholas Verity of Cleverly, also tested ChatGPT Ads and quickly paused his campaign due to zero conversions. He noted that the click-through rates on ChatGPT were lower than those on Google and Meta for the same campaign. Verity also found discrepancies between OpenAI's reported clicks and visits tracked by Google Analytics. The bottom line: While OpenAI has the potential for a massive ad channel, current targeting and measurement capabilities may need significant improvement.