Software Brands Lead ChatGPT Ad Market as Retailers Hold Back

OpenAI is using advertising to broaden ChatGPT's revenue base, targeting free users who account for about 94% of its user base and extending ads to the lower-priced Go plan. The move turns conversations into a channel for product recommendations and brand exposure, while bringing generative AI further into a digital advertising market dominated by Google and Meta.

OpenAI launched its first ChatGPT advertising tests in the United States in 2026, using a cost-per-click (CPC) model for Free and Go users. Other paid plans remain ad-free. Target will place ads through its retail media business, Roundel, with Adobe and other brands also joining the initial test. Neither first-wave budgets nor per-click rates have been disclosed.

OpenAI is extending ChatGPT Ads across Europe as it seeks to turn high-intent conversations into a broader commercial channel. Unlike conventional display advertising, promotions within an AI assistant can reach people while they are researching products, comparing alternatives or preparing to make a decision. The expansion could give brands a new route to consumers while increasing competition with search and social-media platforms for digital advertising budgets.

ChatGPT Ads will become available to advertisers across 31 European markets under the newly announced expansion. Brands will be able to engage users during searches, product comparisons and other decision-making activity on the platform. The announcement summary did not specify individual launch dates, pricing, advertising formats or measurement tools for the 31 markets, leaving key operational details and the rollout timetable to be disclosed later.