Small businesses testing advertising inside ChatGPT could misread early campaign performance if they compare AI search conversion rates directly with Google Ads, according to ecommerce SEO specialist Thomas Phillips.
DTC SEO Agency said advertisers entering ChatGPT campaigns may make expensive budget decisions unless they understand how AI discovery differs from keyword search.
OpenAI has been expanding ChatGPT Ads through a self service Ads Manager beta. Its advertiser materials say companies can create campaigns, set budgets, add payment information, upload ads, launch and manage campaigns, and view performance. OpenAI’s help documentation also describes conversion-optimised cost per click campaigns that allow advertisers to optimise delivery towards a selected conversion event after someone clicks an ad.
The platform’s campaign guidance says advertisers can currently choose from CPM, CPC, and oCPC objectives, with oCPC designed for downstream actions after a click. OpenAI help material lists examples of conversion events including purchases, sign-ups, and lead submissions.
Phillips argues that the commercial danger lies in attribution and interpretation. ChatGPT users may arrive with more detailed intent than conventional search users, which can make conversion rates appear stronger without proving the platform is replacing Google.
Thomas Phillips, founder of DTC SEO, said: “A lot of businesses will look at their first ChatGPT campaign and think it’s outperforming Google overnight. That could be a very expensive misunderstanding.
“Someone asking ChatGPT, ‘What’s the best standing desk for someone with back pain under £300?’ is much closer to buying than someone searching ‘standing desks’ on Google.
“Those users have already researched the problem. They’re looking for reassurance, comparisons and recommendations before making a purchase.”
The distinction is commercially important because AI assistants can sit later in the buying journey. A user may ask for comparisons, shortlist advice, product validation, or reassurance before making a purchase. Google Search still captures a wider range of intent, from early category discovery to price comparison, local availability, brand navigation, and post-research buying.
Phillips said marketers should not compare conversion rates in isolation. He recommends tracking cost per acquisition, assisted conversions across multiple channels, average order value, customer lifetime value, brand searches following ChatGPT exposure, and returning customers rather than one-off sales.
“The biggest mistake businesses could make is moving their budget away from Google simply because ChatGPT appears to convert better,” Phillips said.
“They’re serving different moments in the buying journey. The smartest advertisers will use both.”
The growth of ChatGPT advertising adds another layer to the debate over whether advertisers can turn generative AI adoption into measurable commercial impact. AI discovery is now entering paid media budgets, attribution models, and performance dashboards, not just creative production and research workflows.
The measurement problem is likely to be acute for smaller companies. Many SMEs already struggle to separate last click conversion data from broader marketing contribution. If ChatGPT campaigns reach customers at a high-intent decision point, they may look unusually efficient on a simple conversion-rate dashboard. That does not mean earlier search, content, social, email, marketplace, or brand activity did not help create the sale.
Phillips also said the update changes the way brands should think about SEO and visibility.
“For years, businesses have focused on appearing when somebody searches Google.
“Now brands also need to think about whether they’re visible when somebody asks an AI assistant for advice before they ever visit a search engine.
“That’s why Digital PR, trusted expert commentary and genuinely useful content are becoming more valuable. AI platforms don’t simply rank websites. They recommend brands they trust.”
AI search does not remove the need for search discipline. It makes the customer journey harder to read. A buyer may discover a category through social, research through Google, compare through ChatGPT, click an AI ad, search the brand, and complete the purchase directly. The channel that receives attribution may not be the channel that created demand.
Controlled testing will determine whether the channel earns a durable place in marketing budgets. Small budgets, clear measurement windows, clean tracking, and channel comparison by cost per acquisition and customer quality will carry more value than early headline conversion rates. ChatGPT Ads may become an important performance channel, but its commercial role will depend on where it sits in the decision journey, not whether it beats Google on a single metric.
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