Close Menu
  • News
  • Home
  • In Profile
  • Finance
  • Legal
  • Technology
  • Events
  • Features
  • Wellbeing & Mental Health
  • Marketing
  • HR & Recruitment
  • About
  • Advertise
  • Events Calendar
  • Business Wall
  • Subscribe
  • Contact
  • 0843 289 4634
X (Twitter) LinkedIn YouTube
Trending
  • Customs duty: the hidden cost for UK retailers
  • From the frontline to £1m: What scaling Tiger Cleaning has taught me
  • How to calculate the true cost of IT support for your business
  • Future of UK manufacturing under threat
  • Managing a Gen Z team? Recruiter shares 7 tips for millennial leaders
  • When should businesses put up their Christmas decorations?
  • The ISO Certification Journey – Lessons for SMEs
  • Capital Gains Tax increase isn’t a landlord tax. It’s an entrepreneur tax, and it’s bad for British business.
X (Twitter) LinkedIn YouTube
SME Today
  • About
  • Advertise
  • Events Calendar
  • Business Wall
  • Subscribe
  • Contact
  • 0843 289 4634
  • News
  • Home
  • In Profile
  • Finance
  • Legal
  • Technology
  • Events
  • Features
  • Wellbeing
  • Marketing
  • HR & Recruitment
  • Travel
SME Today
  • About
  • Advertise
  • Events Calendar
  • Business Wall
  • Subscribe
  • Contact
  • 0843 289 4634
  • Twitter
  • LinkedIn
  • YouTube
  • RSS
You are at:Home»Marketing»ChatGPT’s New Ads Could Catch Thousands of Small Businesses Out
Digital ads analytics and online advertising campaign concept

ChatGPT’s New Ads Could Catch Thousands of Small Businesses Out

0
Posted By Editorial Team on August 4, 2026 Marketing

Small businesses rushing to advertise on ChatGPT could end up making expensive marketing decisions unless they understand one major difference between AI search and Google, according to ecommerce SEO expert Thomas Phillips, Founder of DTC SEO.

OpenAI has rolled out conversion-optimised advertising inside ChatGPT, allowing advertisers to optimise campaigns towards purchases, sign-ups and leads rather than simply paying for clicks. The platform has also introduced flexible campaign budgets, allowing spending to increase on days when its AI predicts stronger conversion opportunities.

While the update has been widely viewed as ChatGPT’s biggest challenge yet to Google Ads, Phillips believes many businesses risk misreading the results.

According to Phillips, conversions generated through ChatGPT are likely to appear stronger than Google because users often arrive much further through the buying journey.

Thomas Phillips, Founder of DTC SEO, said:

“A lot of businesses will look at their first ChatGPT campaign and think it’s outperforming Google overnight. That could be a very expensive misunderstanding.

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.”

Rather than comparing conversion rates alone, Phillips says businesses should evaluate how each platform supports different stages of the customer journey.

He recommends marketers track:

  • Cost per acquisition, not just click-through rate
  • Assisted conversions across multiple channels
  • Average order value
  • Customer lifetime value
  • Brand searches following ChatGPT exposure
  • Returning customers rather than one-off sales

“The biggest mistake businesses could make is moving their budget away from Google simply because ChatGPT appears to convert better,” Phillips said.

“They’re serving different moments in the buying journey. The smartest advertisers will use both.”

Phillips also believes the update marks a much bigger shift for SEO.

“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.

That’s why Digital PR, trusted expert commentary and genuinely useful content are becoming more valuable. AI platforms don’t simply rank websites. They recommend brands they trust.”

Five things businesses should do before advertising on ChatGPT

  • Don’t compare conversion rates directly with Google
    Users inside AI platforms often have much higher buying intent.
  • Start with a small test budget
    Gather meaningful data before shifting spend from existing channels.
  • Measure assisted conversions
    Many customers will still complete their purchase elsewhere.
  • Invest in brand authority
    Brands that are recognised and frequently mentioned online are more likely to benefit as AI discovery grows.
  • Keep Google in the mix
    AI advertising should complement existing search activity, not replace it.

Thomas believes the businesses that benefit most won’t necessarily be those with the biggest advertising budgets.

“The winners will be brands that understand where customers are making decisions, and that’s no longer happening in just one place.”

Thomas Phillips is the Founder of DTC SEO, an ecommerce SEO consultancy specialising in search strategy, Digital PR and organic growth for ecommerce brands

Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

Related Posts

Social Media Ban Should Be a Wake-Up Call for Businesses Relying on Paid Ads

How to make sure the next generation of customers can find you in the age of AI

Why physical outreach is making a comeback in B2B sales

Comments are closed.

Follow SME Today on Linkedin and share all the topics you find interesting
Porsch Reading – Find Your Perfect Business Partner
Mastermind9
Events Calendar
    November 26, 2026 10:00 am

    South West Expo Swindon

    October 14, 2026 10:00 am

    Thames Valley Expo Reading

  • Marketing
September 14, 2026

Social Media Ban Should Be a Wake-Up Call for Businesses Relying on Paid Ads

September 4, 2026

How to make sure the next generation of customers can find you in the age of AI

  • Finance
September 18, 2026

Customs duty: the hidden cost for UK retailers

September 17, 2026

Future of UK manufacturing under threat

  • People
August 18, 2026

From Redundancy At 23 To Multi-Million Pound Success: Welsh Ceo To Share Her Story

August 10, 2026

Lloyds appoints Fiamma Morton as Managing Director for SME banking across the UK

  • Health & Safety
August 18, 2026

Employers Warned Not To Delay Vital Safety Training Ahead Of Employment Law Change

July 21, 2026

Loo Of The Year Awards Named Finalist In Prestigious European Industry Awards

  • Events
August 13, 2026

Entries extended for the awards putting solo female founders on a stage of their own

June 29, 2026

Great British Expos Postpones South West Expo Due to Extreme Heat Forecast

  • Community
September 1, 2026

The £1.1bn impact of tackling food waste

August 13, 2026

Independent British Author Reaches No.1 on Amazon & Donates Profits to Charity

  • Food & Drink
September 2, 2026

John Lewis Leans into in-store theatre as it reveals its new restaurant concept

August 12, 2026

Small Food & Drink Business Owner Gripes

  • Books
August 24, 2026

Leadership Amid ‘the Perfect Storm’: Expert Shares Fundamentally Different Approach

August 13, 2026

Independent British Author Reaches No.1 on Amazon & Donates Profits to Charity

The Newsletter

Join our mailing list for the best SME stories, handpicked and delivered direct to your inbox every two weeks!

Sign Up
About

SME Today is published by the same team who deliver The Great British Expos’. We have been organising various corporate events for the last 10 years, with a strong track record of producing well managed and attended business events across the UK.

Join Our Mailing List

Receive the latest news and updates from SMEToday.
Read our Latest Newsletter:


Sign Up
X (Twitter) YouTube LinkedIn
Categories
  • Books
  • Business
  • Community & Charity
  • Education and Training
  • Environment
  • Events
  • Features
  • Finance
  • Food and Drink
  • Health & Safety
  • HR & Recruitment
  • In Profile
  • Legal
  • Marketing
  • News
  • People
  • Property & Development
  • Sponsored Content
  • Technology
  • Transport, Travel & Tourism
  • Wellbeing & Mental Health
Magazine Information
  • About SME Today
  • Editorial Submission Guidelines
  • Advertising
  • Privacy
  • Contact
  • Editorial Complaints Policy
Copyright © 2026 SME Today.
  • About SME Today
  • Editorial Submission Guidelines
  • Advertising
  • Privacy
  • Contact
  • Editorial Complaints Policy

Type above and press Enter to search. Press Esc to cancel.

Subscribe Now!

Sign up for a FREE subscription and receive the latest news, features and updates from SMEToday:

I am interested in:
 

Thank you for subscribing to SME Today! We're thrilled to have you join our community. To complete your subscription, please check your email and click on the confirmation link. If you don’t see the email in your inbox, be sure to check your spam or junk folder. We look forward to sharing exciting news, updates, and exclusive content with you!

Join our mailing list to receive the latest news and updates from SMEToday
Read our Latest Newsletter: