ChatGPT Advertising Glossary
Key terms and definitions for ChatGPT advertising, AI marketing, and conversational ad platforms. Each definition includes verified data points and sources.
Ad-Eligible Users
ChatGPT users on plans that display advertising. Currently includes Free tier and Go tier users in the United States. Approximately 81% of ChatGPT's user base is on ad-eligible plans. Paid subscribers (Plus, Pro, Business, Enterprise, Edu) do not see ads.
AI Referral Traffic
Web traffic sent from AI platforms like ChatGPT and Perplexity. AI referrals account for 1.08% of all web traffic (Previsible, 2025), with ChatGPT driving 87.4% of AI referrals. ChatGPT-referred traffic converts at 15.9% vs 2-3% for traditional organic search.
AI-Native Advertising
Advertising formats designed specifically for AI and conversational interfaces, as opposed to adapting traditional display or search ads. AI-native ads integrate naturally within ChatGPT conversations and appear as sponsored responses rather than banners or interstitials.
ChatGPT Advertising
The placement of sponsored content within OpenAI's ChatGPT interface. Launched February 9, 2026 for Free and Go tier US users at $60 CPM with a $200,000 minimum commitment (Adweek, 2026). First advertisers include Target, Ford, Adobe, Mrs. Meyer's, and Expedia.
Conversation Engagement Rate
A ChatGPT-specific advertising metric measuring how users interact with sponsored content within a conversation. Unlike click-through rate (CTR), this captures follow-up questions, expanded interactions, and time spent engaging with the ad content.
Conversational Ad
An ad format that appears within an AI chat conversation, designed to feel like a natural part of the dialogue. In ChatGPT, these appear at the bottom of AI-generated responses, labeled as 'Sponsored.' They can appear after a user's very first message (WinBuzzer, Feb 2026).
Conversational Intent Signals
User intent data derived from natural language conversations with ChatGPT. Unlike search keywords, conversational intent provides richer context including user goals, preferences, and decision stage. This enables more precise ad targeting than keyword-based systems.
CPC (Cost Per Click)
Cost per individual click on an ad. ChatGPT ads are estimated at $8-12 CPC (Search Engine Land, 2026). Google Ads averages $2.69 CPC (WordStream, 2025). Higher CPC typically correlates with higher user intent and engagement quality.
CPM (Cost Per Mille)
Cost per thousand impressions. ChatGPT ads cost $60 CPM (Adweek, Feb 2026). For comparison: Google Ads averages $3.12 CPM, Facebook Ads averages $12.07 CPM, Super Bowl ads cost approximately $63 CPM (WordStream, 2025).
First-Mover Advantage
The competitive benefit of being among the first advertisers on a new platform. Historical data from Google Ads (2000), Facebook Ads (2007), and TikTok Ads (2020) shows early adopters achieve 3-5x better ROI than brands entering 12-18 months later (Harvard Business Review, 2021).
Free Tier (ChatGPT)
ChatGPT's free access tier, which is eligible for advertising. Along with the Go tier, Free tier users in the United States are the initial audience for ChatGPT ads. Paid tiers (Plus, Pro, Business, Enterprise, Edu) remain ad-free.
GEO (Generative Engine Optimization)
The practice of optimizing content to appear in AI-generated responses from systems like ChatGPT, Perplexity, Claude, and Google AI Overviews. The GEO market was valued at $848 million in 2025 and is projected to reach $33.7 billion by 2034. Key tactics include adding statistics (40%+ visibility boost), citing authoritative sources (30-40% improvement), and using structured data.
Microsoft Advertising Infrastructure
The ad technology platform through which ChatGPT ads are managed and served. OpenAI partnered with Microsoft to use its existing advertising infrastructure for ChatGPT ad operations (Search Engine Land, 2026).
Minimum Advertiser Commitment
The minimum budget required to advertise on ChatGPT: $200,000 (Adweek, Feb 2026). This threshold restricts ChatGPT advertising to enterprise brands and positions the platform as a premium channel.
Sponsored Response
The specific ad format used in ChatGPT, where sponsored products or services appear at the bottom of AI-generated responses, clearly labeled as 'Sponsored.' Unlike traditional ads, these can be contextually relevant to the conversation topic.