ChatGPT Ads Shifts Bidding From Max Bid and Max CPC to Cost Targets
· 35m ago · Originally reported by Search Engine Journal
OpenAI's ChatGPT Ads product is moving advertisers away from manual max bid and max CPC controls toward cost-target-based bidding. This mirrors a shift already seen in major ad platforms toward automated, outcome-based buying.
Why it matters
Bidding models determine how advertisers pay and compete for placement. As new AI chat surfaces roll out ads, adopting cost targets signals automation-first buying will be the norm rather than the exception.
Explain it like I’m new here
Instead of saying the most you'd pay each time someone clicks, advertisers now just tell the system the average cost they want, like giving a cab driver a flat fare instead of a per-mile limit.
Read the original at Search Engine Journal
Terms in this story
CPC (cost per click)
CPC (cost per click) is a pricing model where the advertiser pays only when someone clicks the ad, and also the average amount paid per click.
Advertiser
An advertiser is the company, organisation or person that pays to place ads in order to sell products, build a brand, recruit, or spread a message.
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