Where does ChatGPT Ads fit in a media mix dominated by Google and Meta?

ChatGPT Ads could give brands an opportunity to influence purchase decisions before consumers turn to conventional search, but marketers must establish whether advertising within AI-powered conversations offers a meaningful advantage over established digital channels.

Recently, OpenAI expanded ChatGPT Ads to Indonesia, the Philippines and other Asian markets, offering advertisers access through agency partners and a self-service Ads Manager. The rollout forms part of a wider advertising push, with more than 100,000 advertisers having run campaigns on the platform, according to OpenAI on 21 October.

The ads are labelled separately from AI-generated answers, as the company develops new formats and measurement tools for brands.

For advertisers accustomed to buying search intent on Google, reaching audiences on Meta and TikTok, or targeting shoppers through eCommerce media networks, ChatGPT presents a different opportunity of reaching consumers while they are still defining what they need and comparing potential solutions.

Arya Nugraha, country director for Indonesia at M+C Saatchi Performance, said the platform could fill a gap between initial interest and a more defined purchase decision. He described the moment ChatGPT captures:

What's been missing is the moment where someone is still in the process of working out what they want. They're asking a long, specific question, they're comparing things, they're thinking out loud.

Unlike conventional search advertising, which typically matches advertisements to keywords, Nugraha said ChatGPT Ads could use the wider context of a conversation to match advertising with consumer intent.

"A person typing in 'business travel' is in a very different position to a person asking which airline is best for a weekly Jakarta to Singapore commute. ChatGPT can tell the difference," he said.

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Conrad Victorino, head of media and GM at DO. Asia, said this context could give advertisers a more detailed understanding of a consumer's needs.

"'Are you part of the answer?' is becoming a serious brand question," he said. "Someone asking which laptop to buy for a college student under 35,000 pesos has already given you a budget, a customer and a need. That is valuable context for an advertiser."

From research to the shortlist

The potential advantage is not confined to high-value purchases. Nugraha identified travel, automotive, technology, education and property as natural starting points because consumers often ask numerous questions before committing to a purchase.

However, everyday products could also benefit.

Consumers may use AI to plan meals, choose products for a newborn or compare household essentials, creating opportunities for retailers and fast-moving consumer goods brands with extensive product catalogues.

Victorino similarly argued that a relatively modest purchase can involve considerable research when household budgets are tight.

"That includes cars and holidays, but also a first washing machine, a prepaid plan or ingredients for a week's worth of baon (packed lunches). A modest purchase can involve a lot of consideration when the household budget is tight," he said.

The common denominator is the decision-making process, rather than the price of the product. Brands that can answer a specific need may be better positioned to benefit than those relying on broad awareness alone.

Nugraha advised agencies to test whether their customers are likely to ask questions before buying, using existing keyword themes as a starting point for identifying relevant conversational queries.

If you can't come up with a whole bunch of plausible [customer questions], then the platform isn't a priority for that brand at the moment.

Advertisers must also check product eligibility, as Nugraha noted that certain categories, including financial services, are restricted on ChatGPT Ads.

Search and social still have a role

The arrival of conversational advertising does not necessarily mean that existing media channels will become less relevant. Instead, it could change how brands approach the relationship between discovery, consideration and conversion.

Nugraha said ChatGPT could shorten the research process by bringing comparisons together in a single conversation.

"In the old days you'd open up ten tabs to compare. Now you ask one question and you get a shortlist. If your brand isn't in that shortlist or sitting right next to it, you can be out of the running before the actual comparison even gets going," he said.

Victorino highlighted how an initial question can lead to a series of follow-ups about price, product features and suitability, potentially shaping the shortlist before a consumer visits a website.

"Think about how often a purchase starts with 'Ano bang magandang…?' Roughly translated: 'What's a good…?'" he said. 

"That question leads to more questions: how much, which model, what is the catch, will it work for me? Conversational AI gives people a place to work through those details, potentially shaping the shortlist before a website visit," he added.

For marketers, those questions could inform search messaging, social creative and landing-page content, while conventional search remains important for capturing consumers ready to act.

Nugraha said the shift would require teams to think in terms of questions rather than keywords and ensure that landing pages deliver on the promise made by the advertisement.

Still, the opportunity depends on whether the conversational context leads to a measurable improvement in brand consideration or business outcomes. Reaching consumers earlier in the journey may offer an advantage, but advertisers will need evidence that it translates into demand that existing channels would not otherwise capture.

This is a two-part analysis. Click here to know more on how to kickstart your journey.

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