A developer's experiment with ChatGPT ads has raised concerns about the platform's ad targeting capabilities. The developer, who creates event seating assignment software, spent £289.52 on ChatGPT ads from August 5 to August 28, resulting in 2,988 clicks and just 14 installs. The average cost per conversion was £20.68, a far cry from the developer's expectations.
The developer compared the ChatGPT ad performance to Google ads and free ChatGPT referrals, finding that the latter two sources yielded significantly better engagement metrics. The average time on page for ChatGPT ads was a mere 7 seconds, compared to 20 seconds for Google ads and 23 seconds for free ChatGPT referrals. The bounce rate for ChatGPT ads was also higher, at 69%, versus 46% for Google ads and 39% for free ChatGPT referrals.
To investigate the poor performance, the developer consulted with digital ad fraud expert Dr. Augustine Fou, who helped instrument the website with fouanalytics.com. The analysis revealed that while some bot traffic was present, it was not enough to account for the low conversion rate. Instead, the data suggested that the traffic generated by ChatGPT ads was poorly targeted, with 88% of users moving their mouse but only 10% clicking anything.
Dr. Fou concluded that the problem with ChatGPT ads was not bots, but rather low-value visitors who arrived on the landing page but did nothing else and left. He emphasized the importance of using real conversions as the measure of success and advised investing ad budgets in sources that yield more actual conversions.
The developer's experience has sparked concerns about ChatGPT's ad targeting capabilities and the potential for generating low-quality traffic. With the platform's free referrals converting at a much higher rate, it is unclear why the paid ads are not performing better. The developer's inability to access information about the context in which their ads are being shown has made it difficult to improve the conversion rate, leaving the future of ChatGPT ads uncertain.
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