Clare Farrugia, head of performance, Hatched.
It’s official: ChatGPT is testing ads. It’s one of the most anticipated updates in search ads.
In news that surprised absolutely no one, OpenAI is kicking 2026 off with a bang and the announcement of its plans to test advertising.
Yep, the CEO who disclosed he “hates ads” and stated ads would be “a last resort for us as a business model” has done a backflip.
We’ve been waiting in suspense for this release. Especially after leaked code of the Android Beta showed references to ad features, back in November 2025.
Last year, it was reported that OpenAI was on course to burn through an estimated $8 billion in 2025, with speculation growing that an AI bubble will soon burst. For a company not yet making money, this is really the next logical step.
ChatGPT will begin testing ads in the US in the coming weeks, coming first for users logged into the Free and Go ChatGPT tiers. Of course, if you don’t want ads in your results, OpenAI suggests opting for a paid tier of ChatGPT.
Previews suggest we can expect clear labelling and sponsored results to show at the bottom of chat results. Ads appear to use a mix of text, imagery and potentially product feed inputs.
Although OpenAI has emphasised user conversations will remain private, the ads announcement speaks to personalisation and the use of user data.
What does this mean for advertisers?
For most advertisers, an important question to ask ahead of the full ad release is where this channel can fit into your current media mix. Although there’s arguably a first-mover advantage, it’s also important to properly assess the suitability and role of ChatGPT ads for your brand or business.
By nature, ChatGPT is a conversation-driven environment, so expect to see eventual evolution around conversational ad formats, increased importance on contextual relevance, and creative that works inside AI conversations.
Personally, I’m most interested to see OpenAI’s policy and stance on managing brand safety in these dynamic chat environments.
What can brands do now?
We know AI-led search favours known, trusted, and loved brands.
While you assess the viability of ChatGPT ads, continue improving brand visibility, not only for Search Engine Optimisation (SEO) but also Generative Engine Optimisation (GEO).
Start by investing in your owned and earned assets. Optimise existing product feeds and website pages, and get clear on what you want your brand to stand and be known for.
If you’re a retailer, get familiar with OpenAI’s Developer Docs for Agentic Commerce to understand what the future of product discovery could look like.
Although features like Instant Checkouts are only available to approved partners, you can sign up as a merchant and begin sending your product feed to ChatGPT, and to surface your products natively in chat results.
Is this a good thing?
What’s interesting about the announcement is that the push toward an ad-supported model appears to be disguised behind some sort of altruistic intention.
Alongside OpenAI’s announcement, the company released its ‘Ad Principles’ centred around answer independence, conversation privacy, choice and control, and long-term value.
This is all backed by OpenAI’s mission alignment, “to ensure AGI (artificial general intelligence) benefits all of humanity”.
While OpenAI is making a song and dance about how this release makes ChatGPT more accessible, the question remains whether the company is really providing increased value for all or simply taking the next natural step towards driving commercial outcomes.
Regardless, OpenAI will need to ensure a clear value exchange for advertisers. The breadth and depth of user signals across the platform is a clear USP for ad targeting.
And still to come, the necessary frameworks for in-platform tracking and attribution to drive home brand outcomes.
One thing is for certain, and that is that as OpenAI (and other AI search platforms) continue to monetise their environments, the brands that invest in longer-term brand outcomes will always outperform those who pay-to-play.