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How ChatGPT ads are priced and billed, and how to set your own limit

By Hamza Rivera, updated

TL;DR
  • OpenAI bills ChatGPT ads on impressions and valid clicks. The advertiser sets a maximum bid at the ad group level.
  • Ads are chosen in an auction that weighs relevance and bid, so the highest bid does not win on its own.
  • Reporting refreshes about every 15 minutes, but spend can lag by hours.
  • This guide gives no prices, because they change and OpenAI sets them. It shows how to work out what you can afford instead.

"How much do ChatGPT ads cost?" is one of the most searched questions about the product, and a fair answer is that it depends on an auction. Any article quoting a single price is guessing or quoting a moment in time. This guide explains how billing works, what you control, and how to turn your own numbers into a sensible limit. We have left prices out on purpose.

For a team to run the account and report on conversions, see our ChatGPT ads management.

Think of it like this

It works more like an auction house than a shop with a price tag. You decide the most you would pay for a lot. You are charged according to how the auction goes, and never more than the limit you set.

What you pay for

OpenAI says billing is based on impressions and valid clicks. An impression is when your ad is shown. A valid click is a click that OpenAI counts as real, which is why the word "valid" appears. The balance between the two depends on the objective you choose for the campaign.

Campaign objectiveWhat it is aimed atVerdict
ViewsImpressions, so reachReach, expect no clicks guarantee
ClicksVisits to your pageBest fit for most first tests
ConversionsAn action you defineNeeds working tracking

The max bid

The max bid is set at the ad group level. It is the highest amount you are willing to pay in that group. It is a ceiling, and you do not set it to what you hope to pay. We are not going to suggest a number, because the right one depends on your margin and on what other advertisers are doing, and nobody outside OpenAI can see the second part.

What you can do is set the ceiling from your own side. Work out what a customer is worth, estimate what share of visitors become customers, and the result tells you the most a click can cost before you lose money. A worked example with made-up round numbers, to show the method and not a benchmark:

  • A new customer is worth 1,000 to the business in profit.
  • One visitor in 20 becomes a customer.
  • So a visit is worth about 50 in profit, and a click price above 50 loses money.
  • To keep a margin, you would set the ceiling well below 50.

Those figures are an illustration. Use your own. The ROAS calculator and CPC calculator do the same sum.

How the auction picks a winner

OpenAI says ads compete in an auction based on relevance and bid. Relevance is judged from the conversation context, your landing page, the copy, the context hints and the targeting. This has a useful consequence for a small advertiser. A tightly matched ad with a modest bid can beat a loosely matched one with a bigger bid. It also means that a weak landing page costs you twice, once in relevance and once on the visitor who arrives and leaves.

Budget and dates

The campaign holds the budget and the dates. For a first test, a small budget is the safety limit you can rely on. A fixed end date helps too, but OpenAI says you may not see start or end date options when you create your first campaign. They appear when you edit the campaign after it is created, and OpenAI warns against publishing just to reach them, because ads could start running first. Once a campaign is live, add the end date and check the settings of each campaign on the day you launch it and again a day later, once the delayed spend numbers have caught up.

Reading the numbers

Ads Manager gives you seven numbers. Here is what each one tells you and the trap that goes with it.

  • Impressions: how often the ad was shown. High impressions with low clicks usually means the copy does not fit the situation.
  • Clicks: valid clicks. Compare with the visits in your own analytics.
  • Spend: money used. It can lag by hours, so a low reading in the morning is not a reason to raise the bid.
  • CTR: clicks divided by impressions. Useful for comparing two ads in the same group.
  • Avg CPC: spend divided by clicks. Compare it with the click value you worked out above.
  • Avg CPM: cost per thousand impressions. Matters most on a Views objective.
  • Conversions: the actions you defined. This is the number that decides whether the campaign was worth it, once the tracking is proven.

Costs that are not on the invoice

The ad bill is one part. A landing page that needs work, someone's time to read the report, and the conversion tracking set-up all cost something. If you hire help, ask what is included, as the guide on choosing a ChatGPT ads or GEO agency suggests. The spend inside Ads Manager is paid to OpenAI by your own payment method, and a reputable manager does not need it passed through their account.

Mistakes to avoid

  • Treating the max bid as the price you will pay.
  • Raising a bid because the morning spend looked low.
  • Judging a campaign on impressions.
  • Leaving a live test without an end date once the option appears.
  • Comparing your cost to a number you read in an article without knowing when it was measured.

A price quoted in an article about an auction is like a photo of a wave. Accurate for that one second.

One last thing

Set your own limit before you look at anything OpenAI shows. A ceiling you worked out from your own customer value is the only one you can defend later.

Where to go from here

For a team that sets up the account in your name and reports on conversions, see our ChatGPT ads management service. For the basics first, read how ChatGPT ads work. Passieon is an independent agency and is not affiliated with OpenAI.

Sources

Frequently asked questions

How are ChatGPT ads billed?

OpenAI bills based on impressions and valid clicks. The advertiser sets a maximum bid at the ad group level.

Is there a fixed price for a ChatGPT ad?

No. Ads compete in an auction that weighs relevance and bid, so there is no single price. This guide does not quote one for that reason.

What is the max bid?

The highest amount you are willing to pay in an ad group. It is a ceiling and not the amount you will necessarily pay.

Why does my spend look low in the morning?

OpenAI notes that reporting refreshes about every 15 minutes, but spend can lag by hours. Wait before you change a bid.

Does the highest bid always win?

No. OpenAI says the auction considers relevance as well as bid.

Can I set an end date to limit spending?

A small budget limits spend from the start. Campaigns also carry dates, but OpenAI says the start and end date options may not appear when you create your first campaign. They are available when you edit it afterward, so set the end date then, and do not publish a campaign only to reach them.

Want this done for your site? See what our ChatGPT ads management page covers, or read the client results.

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