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As more people turn to ChatGPT to research products, compare services and make purchasing decisions, businesses have a new opportunity to reach potential customers.
Unlike traditional search advertising, ChatGPT Ads can appear alongside relevant conversations while people are actively exploring their options.
Here’s what NZ businesses need to know about the costs, opportunities and whether it’s worth investing.
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OpenAI’s current minimum campaign budget for New Zealand advertisers is NZ$25 per day, approximately $750 over a 30-day month. However, that’s simply the minimum advertising spend. The right budget depends on your industry, objectives and how much testing is required.
At NZDigital, we’d recommend approaching your initial investment in three stages:
| Monthly Ad Spend | Recommended Approach |
|---|---|
| $750–$1,000 | Initial testing with a focused campaign |
| $1,500–$2,500 | Broader testing and optimisation |
| $3,000+ | Multiple campaigns, services or audiences |
These are suggested advertising budgets, not official OpenAI packages. Agency setup and management fees are additional.
Our recommendation? Start with a manageable budget, establish clear objectives and increase your investment once the results justify it.
ChatGPT advertising offers businesses an opportunity to appear in clearly labelled sponsored placements alongside relevant conversations. For example, someone might ask:
“I’m planning a home renovation in Auckland. What should I consider when choosing a building company?”
A relevant construction business could appear in a sponsored placement alongside the response. Unlike Google Ads, which primarily responds to search keywords, ChatGPT can consider the broader context of a conversation to determine advertising relevance.
Importantly, advertisements remain separate from ChatGPT’s answers. Businesses cannot pay to influence ChatGPT’s independent recommendations.
OpenAI offers several advertising objectives and billing options.
Cost Per Click (CPC)
You pay when someone makes a valid click on your advertisement. This is particularly relevant for businesses looking to generate website traffic and enquiries.
OpenAI currently recommends an initial maximum CPC bid of approximately US$3–$5, although actual costs depend on the advertising auction.
Cost Per Thousand Impressions (CPM)
You pay based on every 1,000 advertisement impressions. This is generally more suitable for businesses focused on brand awareness and visibility.
Conversion-Optimised Campaigns
These campaigns aim to generate actions such as enquiries or purchases, using the available conversion tracking and optimisation tools.
The important distinction is that paying for advertising doesn’t guarantee enquiries or sales. Performance still needs to be monitored and optimised.
One of the biggest questions we’re hearing is whether businesses should shift their Google Ads budgets into ChatGPT. Our recommendation is to consider ChatGPT as an additional advertising channel, rather than a replacement for Google Ads.
Google Ads is particularly effective at capturing existing demand. Someone searching “emergency plumber Auckland” likely knows what they need and is ready to contact a business.
ChatGPT offers a different opportunity. Someone asking “What should I budget for a bathroom renovation in Auckland?” may still be researching, but could become a valuable customer.
| Google Ads | ChatGPT Ads |
|---|---|
| Keyword-driven searches | Conversational context |
| Often captures existing demand | Can reach customers during research |
| Established performance benchmarks | Newer advertising platform |
| Strong for direct enquiries | Opportunity for discovery and leads |
Google AdsChatGPT AdsKeyword-driven searchesConversational contextOften captures existing demandCan reach customers during researchEstablished performance benchmarksNewer advertising platformStrong for direct enquiriesOpportunity for discovery and leads
Both platforms have potential value. The right approach depends on your customers and what you’re trying to achieve.
ChatGPT Ads may be particularly relevant for businesses whose customers research and compare options before purchasing.
Construction & Home Services: Reach homeowners researching renovations, building projects or specialist trades.
Professional Services: Introduce your business to people exploring financial advice, accounting, insurance or consulting services.
eCommerce & Retail: Reach customers comparing products, researching features and looking for recommendations.
B2B Services: Connect with businesses exploring software, recruitment, marketing or other specialist solutions.
The common factor is customer behaviour. If your customers are using AI to research the problems your business solves, ChatGPT advertising could be worth exploring.
Potentially, but like any advertising platform, success depends on having the right strategy. ChatGPT Ads is still a relatively new channel, so there isn’t the same depth of historical performance data available as Google or Meta Ads.
At NZDigital, we’d measure success using practical business metrics:
Cost per click and website traffic
Number of enquiries and conversions
Quality of leads generated
Cost per qualified enquiry
Return on advertising investment
For example, a building company spending $1,500 on advertising might only need one profitable renovation project to justify its investment. However, results will vary, and there’s no guarantee an initial campaign will deliver that outcome.
The goal isn’t simply to generate clicks. It’s to attract customers who can deliver real value to your business.
ChatGPT advertising represents an interesting new opportunity, but that doesn’t mean every business needs to rush into it. If your existing Google Ads campaigns are generating consistent, profitable enquiries, maintaining that performance should remain a priority.
However, if you’re looking to expand your digital marketing, reach new audiences or test emerging advertising opportunities, ChatGPT could be a valuable additional channel. The key is to start with a clear strategy, realistic budget and measurable objectives.
At NZDigital, we’ve been helping New Zealand businesses grow through digital marketing since 2011. We’ve been working directly with OpenAI’s advertising team to explore how ChatGPT Ads can benefit our clients.
From campaign strategy and creative development through to setup, management, optimisation and reporting, we can help you explore this new advertising opportunity.
We’re offering a FREE ChatGPT Ads consultation to NZ businesses interested in getting started.
We’ll discuss your business, potential advertising opportunities, recommended budgets and what an initial campaign could look like.
NZ Digital is an Auckland-based digital marketing agency specialising in lead generation, paid advertising, SEO, and digital strategy. If you’d like help understanding your performance or improving your results, get in touch for a strategy session.
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