ChatGPT advertising arrives: Small businesses should not abandon Google just yet

The competition between artificial intelligence platforms and traditional search engines has entered a new phase. OpenAI has expanded ChatGPT’s commercial capabilities by introducing conversion-focused advertising, enabling marketers to optimise campaigns for purchases, sign-ups and lead generation rather than simply measuring clicks. The development has been widely viewed as a direct challenge to Google’s dominance of digital advertising and search discovery.

Yet while many marketers are eager to experiment with the new opportunity, experts warn that small businesses could easily misinterpret the results if they compare ChatGPT ad performance directly with conventional search campaigns.

According to ecommerce specialist Thomas Phillips, founder of DTC SEO, the fundamental issue is that users interact with AI platforms differently from search engines. As a result, conversion rates alone may not tell the full story.

A different point in the customer journey

For more than two decades, marketers have relied on search advertising platforms such as Google Ads to capture consumer interest. A user enters a search query, evaluates results, and proceeds through the buying journey.

AI assistants operate differently. Instead of asking broad questions such as “standing desks” or “best office furniture,” users frequently approach AI systems with highly detailed requests. These often include specific requirements, budget constraints and intended outcomes.

Phillips explains: “Someone asking ChatGPT, ‘What’s the best standing desk for someone with back pain under $300?’ is much closer to buying than someone searching ‘standing desks’ on Google. Those users have already researched the problem. They’re looking for reassurance, comparisons and recommendations before making a purchase.”

This distinction matters because businesses could see higher conversion rates from ChatGPT traffic and incorrectly assume the platform is automatically outperforming Google.

In reality, the two channels may simply be capturing customers at different stages of the decision-making process.

Why higher conversion rates can be misleading

Marketing performance is often judged through metrics such as click-through rates, conversion rates and cost per acquisition. However, AI-driven interactions create a more nuanced picture. For marketers, comparing conversion rates between the two channels without understanding customer intent risks creating misleading conclusions.

The introduction of advertising into ChatGPT reflects a broader shift occurring across online discovery. Historically, businesses focused heavily on search engine optimisation (SEO). Success depended on appearing when consumers entered relevant queries into search engines. The rise of generative AI is changing that model.

Increasingly, consumers are asking AI assistants for recommendations before ever visiting a search engine. Rather than reviewing pages of links, users receive curated responses that identify products, services and brands believed to best match their needs.

This has significant implications for online visibility. According to Phillips: “For years, businesses have focused on appearing when somebody searches Google. Now brands also need to think about whether they’re visible when somebody asks an AI assistant for advice before they ever visit a search engine.”

The observation reflects a growing trend within digital marketing, where brand authority, trust signals and expert content may have increased influence on AI-generated recommendations.

Traditional SEO has often focused on rankings, keywords and technical optimisation. Today, AI systems are introducing additional factors. Large language models often draw upon trusted sources, established reputation signals, expert commentary and widely referenced content when generating recommendations.

The goal shifts from simply ranking well in search results to becoming a brand that AI systems consider credible when generating recommendations. This may particularly benefit specialist firms and niche brands that have developed strong reputations within their sectors.

Many customers may first discover a brand through ChatGPT but complete their purchase through another channel, such as Google, direct website access, email marketing or social media. Attributing success solely to the final click may therefore underestimate the contribution made by AI-driven discovery.

Why Google is unlikely to disappear

The emergence of ChatGPT advertising has inevitably triggered speculation about Google’s future. However, industry observers generally view the situation as one of coexistence rather than replacement.

Google continues to dominate search, shopping discovery and online advertising. Consumers still rely heavily on traditional search engines for navigation, product research and transactional queries. AI assistants, meanwhile, appear increasingly influential in recommendation-driven decision-making and information synthesis.

Rather than replacing Google, AI advertising may become another layer within a more complex digital ecosystem. As Phillips notes: “The biggest mistake businesses could make is moving their budget away from Google simply because ChatGPT appears to convert better. They’re serving different moments in the buying journey. The smartest advertisers will use both.”

The broader significance of ChatGPT advertising extends beyond media spend. Consumers are beginning to make decisions in environments that differ fundamentally from traditional search. Recommendations generated by AI systems are increasingly shaping how products are discovered, evaluated and selected.