ChatGPT Ads: Surge in Advertisers Amid Falling Average Spending and Dominance of Big Spenders

ChatGPT Ads: Surge in Advertisers Amid Falling Average Spending and Dominance of Big Spenders

ChatGPT advertising has drawn a rush of new advertisers — but rising participation hasn’t translated into higher total spend. An analysis by Search Engine Land of AdClarity data shows rapid advertiser growth alongside a plateau in monthly spending and heavy concentration of budgets among a small group of top spenders.

The research covered U.S. ChatGPT ad activity from April 13 to Aug. 31 and found that advertisers ran 174,700 campaigns and 346,900 ads, generating an estimated $419 million in spending and more than 8 billion impressions. Most spending was concentrated in the U.S., accounting for nearly 90% of total ChatGPT ad spend during that time.

What the data shows

Advertiser counts exploded: monthly active advertisers grew from 839 in April to 17,934 in August. Yet monthly spending stabilized at roughly $90–$100 million after May, which means average spend per advertiser fell dramatically — by roughly 85% from April to August. As Search Engine Land states, “About one in three advertisers who tried ChatGPT ads weren’t running them in August.” (Ronnie Malewski, Search Engine Land)

Spending is highly concentrated. The top 100 advertisers — under 0.5% of advertisers — accounted for 43% of U.S. spend. Software and work-related services dominate the top slots, representing the majority of top advertiser budgets. Retail and consumer brands made up just 7.6% of total ad spending during the period analyzed.

Why this pattern is happening

There are several reasons advertisers flocked to ChatGPT while average budgets fell. First, the conversational, discovery-driven nature of ChatGPT makes it attractive for productivity and software tools that match user intent. Second, early measurement gaps and limited conversion-tracking options made large-scale retail investments risky. Third, a handful of large advertisers moved quickly to secure visibility, leaving many smaller advertisers to experiment with modest budgets.

OpenAI itself frames the opportunity differently. As OpenAI noted in its announcement, “In less than 200 days after launch, ChatGPT Ads has reached $1 billion in annualized revenue run rate.” (OpenAI) That growth suggests the ad platform is maturing quickly, even if budget distribution remains uneven.

What this means for marketers and site owners

1) Measurement first. Early drop-off among advertisers often reflects difficulty measuring performance rather than inherent failure. Before increasing spend, set up pixel tracking, Conversions API, and clear UTMs for attribution. Without these, ChatGPT-driven visits can get lost in analytics or appear as direct traffic.

2) Test with clear goals. Use small, well-instrumented experiments to determine where ChatGPT fits in your funnel — discovery, consideration, or direct response. Define success metrics (e.g., sign-ups, trials, assisted conversions) and measure incrementality where possible.

3) Tailor creative to conversation-driven intent. ChatGPT users frequently ask for help, ideas, or solutions. Ads that surface useful, relevant options or resources that naturally fit a user’s query are more likely to perform than generic promotional messages.

4) Be aware of competition. If your category attracts large spenders, consider focusing on niche use cases or audience segments where smaller budgets can still win. Alternatively, prioritize channels and tactics where your measurement and creative advantages create leverage.

Actionable checklist

• Implement server-side conversions (Conversions API) and UTMs before launching campaigns.
• Run controlled incrementality tests (geo or holdout) to measure true lift.
• Create conversational-first creatives and test visual ad placements where available.
• Monitor ad inventory and bid competition; adjust CPC or outcome-optimized bidding strategies as needed.
• Segment campaigns by intent and measure performance by objective, not just last-click.

Looking ahead

ChatGPT’s ad platform is evolving. OpenAI is introducing new formats (visual ads during image generation) and expanding measurement integrations with partners for attribution and incrementality testing. Those developments should make the platform more accessible to a broader range of advertisers and reduce measurement friction for retail and direct-response marketers.

For now, the combination of a fast-growing advertiser base and concentrated spend presents both opportunity and competition. Marketers who prioritize measurement, creative relevance, and incremental testing can use ChatGPT ads to reach users at the discovery and consideration stages — while guarding against overcommitting in a space where a few big spenders still dominate visibility.

Original Search Engine Land article: https://searchengineland.com/chatgpt-ads-advertisers-surge-average-spending-falls-big-spenders-dominate-501023