Google Ads Outperform ChatGPT Ads By More Than Six Times: Study
What Happened
A study by researchers at Frankfurt School of Finance & Management and WU Vienna found that, at the publicly reported prices used in the analysis, Google Search advertising generated $3.40 in revenue for every $1 spent, compared with just $0.52 for ChatGPT ads, making Google about 6.6 times more cost-effective. A paid ChatGPT visit generated an average $0.89 in revenue versus $2.45 from a Google Search ad, while conversion rates were 0.37% versus 1.17%, respectively. Among 102 advertisers with complete revenue data, 82% recorded no purchase from their ChatGPT ads.
Key Takeaways
The early evidence suggests ChatGPT advertising currently delivers substantially weaker returns than established Google Search advertising. However, the research is a working paper under review, so the findings should be treated as early evidence rather than a definitive benchmark for all advertisers or industries.