ChatGPT Ads can be bought on CPC or CPM depending on the campaign objective. OpenAI recommends a starting max CPC bid of $3–$5 USD and lists a default max CPM of $60. Those numbers are starting points, not performance benchmarks. Budget planning should be based on the question the test needs to answer.
Define test questionChoose CPC or CPMSet pilot budgetLaunch controlledMeasure signalScale or pause

What pricing models do ChatGPT Ads use?

ChatGPT Ads currently supports CPC and CPM buying. CPC is tied to click-focused objectives, while CPM is tied to views or reach-focused objectives. The better choice depends on whether the advertiser needs traffic, awareness, or early delivery learning.

What budget should a first pilot use?

A first pilot should use enough spend to produce directional delivery and engagement data without pretending the channel is mature. For many advertisers, $5,000 to $15,000 over 90 days is a more serious test than a tiny $500 experiment that cannot answer much.

When should you choose CPC?

Choose CPC when the goal is traffic, landing page engagement, lead capture, ecommerce visits, or measurable downstream behavior. CPC is usually easier to compare against search and social because the advertiser pays for clicks rather than impressions.

When should you choose CPM?

Choose CPM when the goal is reach, awareness, category visibility, or early AI-search positioning. CPM can make sense when the advertiser values exposure inside relevant conversations even if click volume is not the primary goal.

What is a bad way to judge cost?

The worst way to judge cost is comparing raw CPC against Google Search without considering intent, funnel stage, conversion quality, and incrementality. A higher CPC can be acceptable if the traffic is more qualified. A lower CPC can still be waste if users do not convert or remember the brand.

Pilot budget planning table

Pilot budgetWhat it can testWhat it cannot prove
$1,000–$2,500Basic account delivery and CTRReliable CPA or ROAS
$2,500–$5,000Early context and creative signalsFull-funnel incrementality
$5,000–$15,000More serious ad group and landing page testingLong-term scaling economics
$15,000+Multiple segments and offer testsPlatform maturity across all verticals

Budget planning checklist

  • Define the business question before setting spend
  • Choose CPC for traffic tests
  • Choose CPM for reach tests
  • Set a maximum monthly loss tolerance
  • Decide minimum data needed before judging performance
  • Compare results against Google Ads and Microsoft Ads
  • Use GA4 and CRM data, not Ads Manager clicks alone
  • Set scale/pause rules before launch