OpenAI's ChatGPT ads cost more per click than Meta or Snap, but the conversion rate is three times higher. That brings the cost per customer down to $30 on ChatGPT versus $33 on Meta, making it worth testing despite the sticker shock.
OpenAI just released the numbers on what they're going to charge on a CPM basis for ads inside their new ChatGPT platform. Way higher than Meta, way higher than Snap. You can look at them here, way higher than even broadcast television. I have seen some data from brands that I work with about the conversion rates that are coming through ChatGPT already. Let me show you an example. Chat ads have a $60 CPM, right? The Meta ads have a $20 CPM. Let's assume they've got the same click-through rate at 2%. We end up paying, I think it's $3 per click. Yeah, $3 on ChatGPT and $1 per click on Meta. But that doesn't really matter here, right? This is where your math is broken and wrong. So ChatGPT is converting way higher. I've seen over 9.5% and Meta converting, let's say, 3%. For the— for those CVRs, for those conversion rates, for the same thing, ChatGPT ends up costing $30 to acquire a customer. Well, Meta ends up costing $33. Point is, the new ChatGPT ads are definitely going to be worth testing, and I think they actually might convert higher than a lot of the competitors. So only time will tell.
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