Advertising on AI Chat Platforms: 2026 Marketer's Guide

Advertising on AI chat platforms is an emerging channel where brands place sponsored content within conversational AI interfaces like Microsoft Copilot, Google Gemini, and potentially ChatGPT. As of late 2025, Microsoft Copilot leads with live advertising delivering 73% higher click-through rates than traditional search. For marketers, this represents a new frontier to reach the 800+ million users now engaging with AI assistants weekly.

You've probably noticed something different lately when using ChatGPT or Perplexity. Sponsored links. Product recommendations that feel a little too relevant. Ads are arriving in AI chat—and most marketers I talk to have no idea what to do about it. After tracking these developments for the past year, I wanted to break down exactly what's happening with advertising on AI chat platforms and what it means for your marketing strategy.

What Is Advertising on AI Chat Platforms?

Advertising on AI chat platforms refers to paid placements within conversational AI interfaces. Unlike traditional search ads that appear alongside blue links, these ads integrate directly into AI-generated responses. Users encounter them when asking ChatGPT for product recommendations, searching Perplexity for reviews, or using Microsoft Copilot for research.

This differs fundamentally from "chatbot marketing"—using chatbots to engage customers on your website. Advertising on AI chat platforms means paying for visibility within the AI's responses themselves. The AI becomes the advertising surface, not just a marketing tool.

Which AI Platforms Accept Advertising?

The landscape for advertising on AI chat platforms varies significantly by platform. Here's the current state as of December 2025:

Microsoft Copilot has the most mature advertising program. According to Microsoft Advertising research, ads in Copilot deliver 73% higher click-through rates and 16% higher conversion rates compared to standard search ads. Customer journeys are 33% shorter, indicating fewer steps to conversion.

Google announced ads in AI Overviews at Google Marketing Live on May 21, 2025. VP Vidhya Srinivasan stated that the Gemini model could detect "subtle commercial intent" and connecting users to products through ads could be "the most helpful next step."

ChatGPT remains ad-free for now. In a November 2025 interview on Conversations with Tyler, Sam Altman confirmed ChatGPT will "likely try ads at some point" but emphasized he has "no idea what they will look like." He proposed an affiliate model where ChatGPT recommends the best product first and takes a commission only if users purchase.

How AI Chat Advertising Works

Advertising on AI chat platforms operates through several distinct formats designed for conversational interfaces.

Context-matched sponsored results appear within Google's AI Overviews as labeled content. The AI detects commercial intent in queries and surfaces relevant ads. Only campaigns using Performance Max, AI Max, or broad-match Search and Shopping qualify for AI placement. Advertisers cannot opt out or bid specifically for AI Mode.

Showroom ads on Microsoft Copilot create immersive product exploration spaces. Users interact with products through conversational content. Microsoft plans to introduce brand agents enabling direct customer interaction within chat.

Dynamic filters represent another Copilot format built specifically for conversational contexts, responding to user inputs in real time.

Native recommendations present product suggestions as part of AI responses—clearly labeled to distinguish from organic content.

Targeting and Performance Metrics

For marketers evaluating advertising on AI chat platforms, performance data from early adopters shows promise.

Microsoft reports Copilot advertising delivers:

• 25% higher ad relevance versus traditional search
• 73% higher click-through rates
• 16% higher conversion rates
• 33% shorter customer journeys

Google's approach leverages commercial intent detection. When users ask purchase-oriented questions, AI Overviews may surface sponsored results. This targeting occurs through existing Google Ads infrastructure—no separate platform required.

Meta AI, launching December 16, 2025, uses chat interactions (text and voice) as targeting signals. According to Meta, conversations combine with existing signals like likes and follows to personalize ads across Facebook and Instagram. Users cannot opt out globally, except in the UK, EU, and South Korea.

Privacy and User Considerations

The privacy landscape for advertising on AI chat platforms varies significantly.

Meta AI represents the most aggressive approach. Beginning December 2025, chat data informs ad targeting with no opt-out option. However, sensitive topics—religious views, sexual orientation, political views, health conditions, racial or ethnic origin, and philosophical beliefs—are excluded from targeting.

Microsoft emphasizes user-centric principles. According to their advertising policy, queries remain private under Microsoft data policies, and ads never influence organic responses. Sponsored content is distinctly marked.

Consumer behavior suggests receptivity to AI-assisted purchasing. According to industry research, 52% of ChatGPT usage involves consumers in their purchasing journey. This creates significant opportunity for advertising on AI chat platforms as user comfort with AI recommendations grows.

Why Marketers Should Pay Attention

The numbers demand attention. ChatGPT alone has 800 million weekly active users—representing roughly 10% of the world's adult population, according to Business Insider. This audience actively engages with AI for product research, with weekly active users growing 700% since November 2023.

For paid media campaigns, advertising on AI chat platforms represents a natural extension of existing strategies. The infrastructure integrates with existing Google and Microsoft ad platforms. Early performance data suggests higher engagement than traditional search.

The competitive opportunity is clear. Most top search results focus on chatbot marketing or industry news rather than practitioner playbooks. Marketers who understand advertising on AI chat platforms now will have first-mover advantage as ChatGPT and Perplexity eventually introduce their own ad products.

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FAQ: Advertising on AI Chat Platforms

Can I advertise on ChatGPT?

Not yet. Sam Altman confirmed in November 2025 that ChatGPT will likely try ads "at some point," but no timeline exists. The proposed model involves affiliate commissions rather than traditional ad placements.

How much does AI chat advertising cost?

Advertising on AI chat platforms uses existing ad platform pricing. Microsoft Copilot ads run through Microsoft Advertising; Google AI Overview ads run through Google Ads. No separate CPM or CPC rates are disclosed—costs follow standard bidding models.

Which platform should I try first?

Microsoft Copilot offers the most mature program with proven performance metrics. Start there if your audience uses Microsoft products. For broader reach, Google AI Overviews provides access through existing Search and Shopping campaigns.

Will AI ads replace traditional search ads?

Not likely. AI advertising complements traditional search. Google requires Performance Max or AI Max campaigns to access AI placements—you can't abandon standard campaigns entirely.

How do I get started with Copilot ads?

Access Copilot advertising through the Microsoft Advertising platform. Ensure campaigns use eligible formats (broad match, Shopping, or Performance Max equivalents) and target markets where Copilot ads are live.

Sources

1. Microsoft Advertising – Copilot Advertising Principles (March 2025)
2. Google Marketing Live 2025 – AI Overviews Announcement (May 21, 2025)
3. Business Insider – ChatGPT Users Growth Statistics (October 2025)
4. OpenAI – How People Are Using ChatGPT (July 2025)
5. Meta – AI Chatbot Advertising Announcement (December 2025)
6. Conversations with Tyler – Sam Altman Interview (November 2025)