Advertisers report that many ChatGPT ads appear off-topic. Data shows low sign-up rates and uneven ad delivery. Only a small share of ads cite sources. Marketers face challenges with targeting and conversions.
ccording to a study by SE Ranking, 14.35% of ads shown in ChatGPT responses had no topical connection to the user's prompt. In specialized categories such as Relationships and News & Politics, the rate of off-topic ads exceeded 50%, raising concerns about contextual targeting.
The research, which analyzed 50,006 commercial prompts across 20 niche markets in the U.S., found that only 3.63% of ChatGPT ad placements cited the advertiser as a source in the answer, compared to 11.53% in Google AI Mode. SE Ranking identified 1,159 unique advertisers using the platform during the test period. BestMoney, a fintech platform operated by Natural Intelligence, was the most active, accounting for 13.56% of all ChatGPT ad units.
SE Ranking ran its own campaigns to assess performance from the advertiser perspective. Over two weeks, three campaigns with eight ad groups and 48 ads generated more than 97,000 impressions and 1,263 clicks across the U.S., Canada, Australia, and New Zealand. Despite a click-through rate of 1.30%, the campaigns produced very few sign-ups, leading the agency to halt further investment. SE Ranking attributed the weak conversion to "audience eligibility," noting that ChatGPT ads are only shown to Free and Go plan users, while Plus, Pro, Business, and Enterprise subscribers do not see ads. This limitation means that heavy AI users-often the ideal customers for agencies-are less likely to encounter the ads.
Ad delivery within ChatGPT was also found to be uneven. The two largest ads received about half of all impressions, while others saw minimal traffic. SE Ranking reported that conversation volume and ChatGPT's interpretation of context hints played a major role in determining which ads were shown. The platform's early limitations included a lack of in-platform conversion data for optimization, though SE Ranking noted that some features have been added since the initial test.
These findings echo earlier concerns about the platform's measurement and transparency, as discussed in a previous analysis of marketer adoption of ChatGPT ads. The ongoing challenges with targeting, reporting, and audience reach continue to shape advertiser strategies on the platform.
