Why ChatGPT ads won’t likely impact holiday sales in a major way this year
Brands are starting to test OpenAI's ChatGPT ads. But high costs and weak sales mean they expect little holiday budget to shift away from Google or Meta and toward these AI platforms.
Brands are not anticipating ChatGPT ads to significantly boost sales during the upcoming holiday season. The rollout of ChatGPT's advertising capabilities in early 2026 has quickly positioned it as an appealing new channel for companies wanting to leverage the increasing popularity of AI-driven search. Hundreds of brands have begun investing in OpenAI's advertising services, seeking to tap into the high-intent audience and convert them into customers.
However, the early enthusiasm suggests that ads for AI platforms are still in their early stages. Several obstacles hinder their success, including prohibitive cost-per-click rates and the lack of proven sales. Moreover, AI assistants are still striving to prove their credibility as a reliable source for product recommendations.
Additionally, the fast-paced nature of the fourth quarter makes it an unwise period to allocate ad budgets to experimental ventures. For the most part, advertisers still view ChatGPT as an expensive testing ground, rather than a reliable channel, particularly when compared to more established players like Meta and Google. To read the full article, visit modernretail.co.
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Written by urgent.news from Modern Retail's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
