Generative AI models are changing customer acquisition by participating in the decision-making process. Unlike traditional search engines, AI assistants structure requirements and compare alternatives within a single dialogue, forcing businesses to adapt their marketing strategies to appear in AI-generated recommendations.
OpenAI has introduced ChatGPT Ads, utilizing a specialized LLM orchestrator to analyze conversation context. This system uses vector embeddings and approximate nearest neighbor search to match ads with user intent. The infrastructure operates independently of the main AI response, ensuring that sponsored blocks do not influence the organic content provided by the model.
The advertising model is currently in beta and restricted to Free and Go tier users, excluding those on Plus, Pro, Business, Enterprise, and Edu plans. Additionally, campaigns cannot be targeted at users in Russia. Yandex is also testing similar promotional placements within its Alice AI chat, where ads appear as labeled banners or cards under the main response.
Beyond paid advertising, businesses are exploring Generative Engine Optimization (GEO). This approach focuses on organic visibility, aiming to have a brand mentioned directly within the AI's natural response. Unlike paid ads, GEO does not involve direct payments to the AI provider to influence recommendations, relying instead on information availability and relevance to user queries.
