Hotels can now buy ads inside ChatGPT with no minimum spend

Hotels and other small travel businesses can now buy ads inside ChatGPT without a big budget. Early tests reportedly required $200,000. Now there is no minimum spend, only a required daily budget of $25. The catch is the price per click. Bids under $2.99 are unlikely to show at all.

What changed

Earlier this year, OpenAI began testing ads in the US on ChatGPT's Free and Go plans. Early terms included a $200,000 minimum and a charge of $60 per thousand views, with no way to track conversions. Big travel sites like Expedia moved fast. In May, OpenAI added self-serve buying, a pay-per-click option and better measurement. Ads appear after ChatGPT's answer.

How the ads work

Advertisers pick one goal: reach, clicks or conversions. That choice cannot be changed later. Targeting can be set by state, city, zip code or metro area, and places can be excluded. Advertisers can also set a campaign total instead of a daily budget.

Ads are matched to the conversation and what the user seems to want. Advertisers can add optional "context hints," short notes on the topics where their business fits. OpenAI says these guide matching but are not exact rules.

What it costs

• Daily budget: $25 required, or a campaign total instead.
• Strong delivery: minimum clicks bids of $3 to $5.
• Bids under $2.99: unlikely to show.
• Suggested start: $3, then raise by $0.50 when delivery slows.

Custom audience lists are possible, but they need at least 25,000 users.

What to do

The article comes from Kylie Chen of Cogwheel Marketing, a firm that sells marketing services. She calls ChatGPT ads a supplement for reaching travelers early in their planning, especially for hotels that care about showing up in AI answers. A small test is now affordable. Treat it as a test, and watch how fast the $3 clicks add up.

What is not known

The piece covers setup and costs but gives no results, such as how many clicks turn into bookings. Features have also changed often, and the author advises checking back for updates. The ads are limited to the US for now.