OpenAI is introducing a new approach to bidding in ChatGPT Ads, replacing manual bid limits with AI-powered optimisation designed to help advertisers achieve their performance goals.
ChatGPT Ads is taking another step towards becoming a performance-focused advertising platform.
From 9 November 2026, advertisers will be able to use Target Cost Per Acquisition (Target CPA) and Target Cost Per Click (Target CPC) bidding strategies, bringing ChatGPT Ads closer to the automated bidding models already familiar to advertisers using Google Ads and Meta.
The changes represent an important development in how brands can manage advertising within conversational AI environments, shifting the focus from controlling individual bids to optimising towards measurable business outcomes.
For e-Commerce brands and performance marketers, this signals a move towards more sophisticated campaign management within ChatGPT.
What's Changing In ChatGPT Ads?
OpenAI has announced three significant updates to its bidding framework.
1. Target CPA bidding for conversion campaigns
Target CPA will replace Max Bid for newly created conversion campaigns.
Rather than setting a maximum bid, advertisers will specify the average cost they're willing to pay for a conversion, such as a purchase or lead.
ChatGPT Ads will automatically adjust bids and delivery to work towards that target.
For e-Commerce brands, this introduces a more commercially relevant approach to campaign optimisation, allowing advertisers to focus on acquisition efficiency rather than individual auction costs.
2. Target CPC bidding for traffic campaigns
Target CPC will replace Max CPC for new click campaigns.
Previously, Max CPC allowed advertisers to cap individual bids. Under the new approach, ChatGPT Ads can bid above or below the specified target in individual auctions while working towards the desired average cost per click.
This provides greater flexibility for the platform to compete for potentially valuable traffic without being constrained by a fixed maximum bid.
3. Intelligent bidding becomes the default approach
OpenAI is also renaming its existing Maximize Results automated bidding strategy to Intelligent Bidding.
The system will continue adjusting bids and campaign delivery automatically to generate as many results as possible within the advertiser's budget.
Together, these changes reflect OpenAI's intention to make campaign optimisation increasingly automated.
Key Dates For Advertisers
The transition to the new bidding framework will take place in two stages:
- 9 November 2026: Target CPA and Target CPC bidding options become available in Ads Manager.
- 9 November 2026: New conversion and click campaigns will move to the corresponding target-based bidding options.
- 1 January 2027: Max Bid and Max CPC bidding strategies will be retired, with all remaining campaigns transitioned to the new strategies.
Existing campaigns can continue operating on their current bidding strategies during the transition period. This gives advertisers time to review campaign performance, establish suitable bidding targets and prepare for the migration.
Why This Matters For e-Commerce Brands
For e-Commerce advertisers, bidding automation is an important part of scaling paid media activity efficiently.
Google Ads and Meta have spent years developing systems that use conversion data, audience behaviour and auction signals to optimise campaign delivery.
ChatGPT Ads is now moving in a similar direction.
However, there are three important considerations.
1. Conversion Tracking Becomes Increasingly Important
Automated bidding depends on the quality of the signals it receives.
OpenAI is advising advertisers to verify that their Pixel or Conversions API is correctly sending conversion events to the data source associated with their campaigns.
It is also encouraging advertisers to monitor Event Quality Score (EQS) warnings to identify potential tracking issues. Poor conversion signals can limit an automated bidding system's ability to optimise effectively.
Setting a Target CPA significantly below a campaign's historical performance may restrict delivery and prevent the platform from spending its available budget.
Similarly, an overly aggressive Target CPC could reduce traffic volume.
Advertisers should use recent campaign performance to establish realistic initial targets, then adjust them as sufficient performance data becomes available.
2. Advertisers Gain More Control Over Business Outcomes
The introduction of Target CPA is particularly relevant for advertisers focused on customer acquisition.
Rather than managing bids at an auction level, brands can begin aligning campaign optimisation with their commercial objectives.
However, Target CPA should not be confused with profitability.
A £20 acquisition cost may be profitable for one e-Commerce business and unsustainable for another, depending on average order value, product margins and customer lifetime value.
Advertisers will still need to evaluate campaign performance against wider business metrics.
3. Is ChatGPT Ads Becoming A Competitor To Google Ads?
The introduction of automated bidding strengthens the similarities between ChatGPT Ads and established performance advertising platforms.
Both Google Ads and Meta already offer sophisticated automated bidding strategies designed to optimise towards conversions, acquisition costs and other business outcomes.
ChatGPT Ads is developing comparable campaign-management capabilities.
However, there is an important distinction.
ChatGPT operates within a conversational environment, where users may be researching products, comparing alternatives or seeking recommendations before making a purchase.
For e-Commerce brands, accurate purchase tracking and reliable conversion data will therefore become increasingly important as ChatGPT Ads develops.
Setting Realistic Targets Will Influence Campaign Delivery
One of the biggest challenges with target-based bidding is finding the right balance between efficiency and scale.
This creates the potential for advertisers to reach consumers during different stages of their decision-making process.
Whether that translates into stronger acquisition performance will depend on factors including ad relevance, user intent, conversion measurement and the maturity of OpenAI's advertising technology.
The introduction of Target CPA is a meaningful development, but it does not automatically establish ChatGPT Ads as a replacement for Google Search, Shopping or Meta advertising.
What Should Advertisers Do Before January 2027?
Brands currently running ChatGPT Ads campaigns should begin preparing for the transition.
Audit existing campaigns: Identify campaigns using Max Bid or Max CPC and review their recent performance.
Validate conversion tracking: Confirm that Pixel or Conversions API events are firing correctly and address any Event Quality Score warnings.
Establish realistic targets: Use historical CPA and CPC performance to determine appropriate starting points.
Monitor delivery after switching: Watch for changes in spend, conversion volume, CPA and traffic quality.
Evaluate commercial performance: Look beyond platform metrics to understand the impact on revenue, profitability and new customer acquisition.
Advertisers should avoid assuming that tighter targets will automatically improve results. Automated bidding requires sufficient flexibility and reliable performance signals to operate effectively.
360 OM's Perspective: AI Advertising Is Moving Towards Outcome-Based Optimisation
At 360 OM, we see this update as another indication of how AI is reshaping performance marketing.
The industry has steadily moved away from manual bid management towards automated systems that use data to make increasingly complex optimisation decisions.
ChatGPT Ads appears to be following that direction.
For advertisers, the opportunity is not simply to access another advertising channel. It is to understand how conversational AI could contribute to customer acquisition alongside established platforms.
As these systems develop, strong measurement, first-party data and commercially informed bidding strategies will remain essential.
The next important question is whether ChatGPT Ads can consistently deliver incremental customers at a competitive acquisition cost.
That will ultimately determine how significant the platform becomes within e-Commerce advertising budgets.
For now, the introduction of Target CPA and Target CPC marks an important step in the evolution of advertising within ChatGPT.
Need a fresh perspective? Let’s talk.
At 360 OM, we specialise in helping businesses take their marketing efforts to the next level. Our team stays on top of industry trends, uses data-informed decisions to maximise your ROI, and provides full transparency through comprehensive reports.
.png)
