Advertising

ChatGPT Ads Are Coming in 2026: What Marketers Need to Know Now

If you thought the Performance Max rollout kept you on your toes, buckle up. We're about to witness something we haven't seen since Google Ads launched in 2000: a completely new search advertising paradigm.

ChatGPT is testing ads internally right now, and the launch is imminent, likely Q1 or Q2 of this year. As someone who's been managing paid search campaigns through most major platforms evolution over the past 13 years, I can tell you this one feels different. And here's why we should all be paying attention.

Why This Matters More Than You Think

Let me start with the numbers that made me sit up straight: 800 million weekly active users. That's not total downloads or registered accounts, that's active weekly users engaging with ChatGPT right now. For context, that's roughly the population of Europe using this platform every single week.

Unlike when Google or Meta added new ad formats to existing platforms, OpenAI is building an advertising business on top of a product that users deeply trust with personal questions, financial decisions, and sensitive information. The second those ads feel intrusive or manipulative, users bolt. That constraint actually creates opportunity for advertisers willing to play by different rules.

What Makes Conversational Ads Different (And Why We Should Care)

I remember when smart bidding was introduced, when mobile-first indexing hit, when Performance Max forced us all to surrender control. Each time, we adapted. This is going to require something else entirely—a shift in mindset, not just methodology.

  • Traditional Search Ads: User types "project management software" → We bid on that keyword → Our ad shows → User clicks

  • ChatGPT Ads: User asks "I'm managing a team of 8 across 3 time zones and drowning in email threads, what do I need?" → AI understands context, intent, pain points → Sponsored recommendation appears in the answer

See the difference? We're not bidding on keywords anymore. We're bidding on actual human intent expressed in natural language. That's simultaneously exciting and terrifying.

The implications for how we structure campaigns, write ad copy, and think about targeting are huge. We've spent years optimizing for search queries. Now we need to optimize for conversations.

The Uncomfortable Truth About "Sponsored Recommendations"

Here's the part that's keeping me up at night, and I think we need to talk about it honestly: OpenAI is reportedly testing the ability to "prioritize sponsored content" within ChatGPT's actual responses. Not just sidebar ads, sponsored content in the answer itself.

Imagine a user asks ChatGPT: "What's the best way to treat a headache?" and the response prioritizes Advil because it's a paid placement, potentially burying information about when to see a doctor or alternative remedies.

That's a trust issue, plain and simple. And as advertisers, we have a responsibility to think about whether we want our brands showing up that way.

My take? The advertisers who win on this platform won't be the ones trying to game the system with the highest bids. They'll be the ones whose products genuinely solve the problem the user is asking about. ChatGPT's success depends on maintaining user trust, which means relevance isn't just a nice-to-have—it's existential for the platform.

The Revel Approach (What We're Actually Doing to Prepare)

At Revel Interactive, we're not waiting for an official announcement to start positioning our clients. Here's a glimpse of our playbook:

1. We're Recommending Microsoft Shopping Budget Now

Here's the strategic move: we're recommending clients allocate 5-10% of their paid search budget to Microsoft Ads Shopping. Why now? Because the setup barrier is practically non-existent. Microsoft Shopping can pull feeds directly from Google Merchant Center through a simple integration, no need to build an entirely new merchant account or duplicate all your feed work.

Why does this matter for ChatGPT? Given the OpenAI-Microsoft partnership, having an active presence on Microsoft Ads positions clients strategically for when ChatGPT advertising launches. Whether the ad platform integrates directly with Microsoft Ads or operates as a standalone system, clients with existing Microsoft Shopping campaigns will have cleaner data, established feeds, and the infrastructure to move quickly.

Budget constraints have kept many of our clients focused solely on Google, but the Microsoft integration removes the operational barrier. Now it's just about carving out a small testing budget to establish presence before ChatGPT ads go live and competition intensifies.

2. We're Working with Clients on Conversational Product Descriptions

Here's something we're starting to explore: AI-driven platforms need different feed optimization. Your product title "Women's Running Shoes Size 8" performs great in traditional Shopping. But ChatGPT users ask "What are comfortable running shoes for someone with flat feet who runs 5Ks?"

We're working with clients to test conversational product descriptions that answer questions, not just list features. It's a different skill set, closer to content writing than traditional feed optimization. Not every client is ready for this yet, but the ones who are will have a significant head start.

3. We're Setting Realistic Expectations with Clients

This is critical. We're not telling clients to shift budget from Google to ChatGPT in Q2. We're not promising this will be a silver bullet. What we are recommending is setting aside 5-10% of their Microsoft Ads Shopping budget as "experimental" so we're ready to test when beta access opens.

We learned this lesson with Performance Max: clients who had budget flexibility to test early got ahead. Clients who waited until their competitors had months of data struggled to catch up. 

4. We're Studying Conversational Search Patterns

Try this exercise: Go to ChatGPT right now and type in questions your customers ask. Not keywords, actual questions. See what comes back. Is your brand mentioned? Are your competitors? What content is ChatGPT pulling from?

We've been doing this for weeks across client verticals, and it's revealing. Some brands show up constantly. Others are invisible. That visibility gap exists before paid ads launch, which means there's organic opportunity right now.

The Three Scenarios We're Planning For

Nobody knows exactly how ChatGPT ads will launch, so we're preparing for three possibilities:

Scenario 1: Standalone Platform
OpenAI builds their own ads manager, similar to Google Ads or Microsoft Ads. We'd need to learn a new interface, new reporting, new optimization levers.

Scenario 2: Microsoft Ads Integration
ChatGPT becomes a new campaign type within Microsoft Advertising. This would be ideal. We already know the platform, our clients are already set up, and we could launch day one. Our bet? This is most likely given the OpenAI-Microsoft partnership.

Scenario 3: Hybrid Approach
Standalone platform that also integrates with Microsoft Ads for product feeds and some targeting. Honestly, this feels most realistic given how complex ad ecosystems work.

We're positioned for all three, with the heaviest emphasis on making sure Microsoft Ads infrastructure is solid across our client base.

What We’re Watching For (And You Should Too)

The next 90 days will tell us a lot. Here are our early warning signals that launch is imminent:

  • OpenAI job postings for "Advertiser Success" or "Agency Relations" roles

  • Microsoft Advertising webinars or documentation mentioning ChatGPT integration

  • Beta program invitations starting to circulate (these usually leak to Reddit first, honestly)

  • Updates to OpenAI's terms of service around commercial content

The moment we see two or more of these signals, we'll know we're weeks away, not months.

The Real Question: Should You Care Right Now?

It depends on your clients and your capacity.

You should absolutely care if:

  • You manage e-commerce clients (shopping integration is coming)

  • Your clients have strong Microsoft Ads performance already (lowest barrier to entry)

  • You have budget flexibility to test new platforms (first-mover advantage is real)

You can wait if:

  • Your clients are local service businesses without e-commerce (ChatGPT ads will skew toward retail initially)

  • Your clients have razor-thin margins (beta testing requires budget cushion)

What you absolutely should not do is ignore this until Q4 2026 and then panic when competitors have been optimizing for six plus months. We've seen this before with Performance Max, and it doesn't end well.

Final Thoughts: Staying Ahead Without Losing Our Minds

Look, I get it. Another platform, another set of unknowns, another thing to explain to clients who are still asking why their exact match keywords aren't actually exact anymore. The pace of change in paid search is exhausting.

But here's what I keep coming back to: we're watching the birth of conversational advertising in real time. Twenty years from now, we'll tell newer marketers about "the time before AI ads" the same way we talk about "before smartphones" or "before Performance Max."

The agencies that thrive won't be the ones with perfect information, none of us have that. It'll be the ones who stay curious, test intelligently, and help clients navigate change without overpromising or fear-mongering.

At Revel Interactive, we're approaching this the way we approach every major platform shift: informed optimism, strategic preparation, and a willingness to be wrong and adjust quickly. That's worked for us through every Google update, every Meta algorithm change, and every new feature rollout. No reason to change the playbook now.

Stay tuned. We’ll be sharing updates as we learn more. And if you want to talk through what this means for your specific clients? You know where to find your Revel team. This is what we're here for.

Sources:

Unlocking Growth with Demand Gen: Go Beyond Search Marketing to Find New Customers

Reimagining display and YouTube campaigns with Demand Gen for smarter awareness marketing.

Introduction 

At Revel, we see Google’s Demand Gen campaigns as the bridge between awareness and conversion—meeting over three billion monthly users, according to Google, right where they're exploring, not just searching. For brands ready to expand beyond search, Demand Gen unlocks new scale and reach, comparable to social platforms in Google’s own ecosystem. It’s a fit for clients with strong conversion tracking, visual-first assets, and a minimum $3,000/month budget. Brands that are starting to plateau in search and want to compete with the influence of social without paying inflated costs should explore Demand Gen as an option for top to mid funnel customer acquisition. 

Content & Audiences

Demand Gen thrives on visuals; matching creative to context helps our clients pair the right mix of video, imagery, and UGC depending on their vertical. For e-commerce, that means balancing lifestyle storytelling with product-centric assets; for B2B and services, it’s about weaving in trust, expertise, and social proof. Each industry requires its own creative rhythm—beauty moves fast with trend-driven content, while education and construction benefit from longer, credibility-focused narratives. Our role is to guide clients in building the right blend so their content feels native, engaging, and persuasive across YouTube, Discover, and Gmail.

Reaching the right audience is just as critical. Revel’s “audience stack” approach starts with lookalikes and custom intent, then layers on in-market signals, retargeting, and life events. Unlike broad affinity audiences, this precision keeps campaigns focused on high-intent prospects while still allowing Google’s AI to optimize. We structure campaigns around prospecting or retargeting, excluding converters to maximize efficiency that scales reach without losing relevance.

Why Demand Gen 

Demand Gen isn’t search—it’s mid to upper-funnel—and success means looking at the bigger picture: engagement, assisted conversions, and lifetime value. Early weeks are about learning and reach; months two and three bring stabilization as CPAs normalize, creative winners emerge, and campaigns scale. With clear benchmarks by vertical and a disciplined refresh cycle for assets, we help clients measure what matters most: sustained growth, not just short-term clicks.

Demand Gen captures audiences earlier in the journey. By combining Google’s owned inventory with Revel’s creative, targeting, and measurement expertise, we help clients harness Demand Gen as a growth engine. This isn’t about running ads for the sake of ads—it’s about building an adaptive, data-driven system that continuously learns, optimizes, and drives meaningful results. Reach out to the Revel team for more info.

Photo: © Brett Jordan from Pexels

The Ultimate Guide to Paid Ad Specs: Paid Search, Display, DemandGen, Paid Social, & Affiliate

The Ultimate Guide to Paid Ad Specs: Paid Search, Display, DemandGen, Paid Social, & Affiliate

In today's digital world, using ads effectively across various platforms is essential for boosting engagement and driving conversions. As online competition intensifies, leveraging a mix of paid search, display, social media, and affiliate marketing can help you reach your target audience and achieve your marketing goals.

This guide (updated as of August 2024) covers everything from image extensions, Performance Max, Responsive Display, uploaded banners, DemandGen, and YouTube on Google Ads to Meta platforms (Instagram and Facebook), TikTok, Pinterest, LinkedIn, Reddit, Snapchat, and affiliate marketing. Keep this index handy for quick reference and take your campaigns to the next level.

The Ultimate Q4 2025 eCommerce Calendar: Key Holiday Dates and Revenue Opportunities

The Ultimate Q4 2025 eCommerce Calendar: Key Holiday Dates and Revenue Opportunities

Just how high can the ceiling go? Cyber Week alone brought in $314.9 billion in global sales, according to Salesforce, helping push total holiday ecommerce spending to $1.2 trillion worldwide. In the U.S., core retail sales during the 2024 holiday season grew 4 percent year over year, reaching a record $994.1 billion and beating expectations from the National Retail Federation. One thing is clear: consumers are starting their holiday shopping earlier.

With 2025 looking just as competitive, brands need to plan smart, act early, and promote with purpose. Use this calendar to map your campaigns, align your creative, and make the most of every key date in Q4.

Microsoft vs. Google Ads: Which Platform Is Right for Your Business?

Microsoft vs. Google Ads: Which Platform Is Right for Your Business?

When it comes to digital advertising, the two major players that come to mind are Microsoft Ads and Google Ads. Both platforms offer robust tools for businesses to reach their target audiences online, but deciding between them can be a daunting task. In this guide, we'll dive into the key differences between Microsoft Ads and Google Ads to help you determine which platform is better suited for your business goals.