OpenAI announced a global change to its ChatGPT Ads platform, replacing maximum bid limits with average cost targets for advertising campaigns, effective November 9.
The shift introduces Target Cost Per Acquisition (CPA) and Target Cost Per Click (CPC) as the new metrics, altering how advertisers manage spending and optimize campaign performance.
For conversion-focused campaigns, Target CPA will supersede the previous Max Bid option, according to OpenAI. Similarly, click-based campaigns will now use Target CPC.
Existing campaigns that currently employ Max Bid and Max CPC will continue to operate under those settings until January 1, 2027, after which the new average cost targets will apply universally.
OpenAI advised advertisers to base their new targets on recent actual CPA or CPC averages and to closely monitor campaign performance following the transition.
API partners will see new Target CPA and Target CPC fields integrated into the system on November 18. Legacy fields associated with the older bidding methods will also undergo behavioral changes, OpenAI reported.
The move by OpenAI mirrors a similar adjustment made by Microsoft earlier this year. Microsoft ceased offering Max CPC on new non-portfolio campaigns starting October 1, after announcing the change in August, according to Digiday.
Brooke Osmundson, a representative for OpenAI, confirmed the company’s intention to provide advertisers with more predictable spending and optimized results through the new average cost models.
The company stated that the change aims to simplify campaign management and improve efficiency for advertisers on the ChatGPT Ads platform.
Source: Search Engine Journal
