Should You Spend on ChatGPT Ads? 10 Questions to Help You Decide

ChatGPT Ads can be worth testing for Malaysian businesses that want to reach potential customers while they research products, compare services and make purchasing decisions. However, whether they deserve your advertising budget depends on your audience, profit margins, marketing KPIs and existing campaign performance.

If you’re already spending RM5,000 or RM50,000 monthly on Google Ads and Meta Ads, the question of investing in another channel is enough to get your head scratching and your finances reeling.

Well no more! Because our SEO Agency today will propose 10 questions that will help you decide whether to test ChatGPT Ads now, prepare your business first or continue investing in channels that already work.

We even have a yes/no for each question to help you gauge better!

1. Are Your Target Customers Using ChatGPT Before Making Buying Decisions?

Before investing in a new advertising channel, determine if your customers actually use it during their buying journey.

Someone looking for emergency plumbing services may immediately search Google for a nearby plumber.

Meanwhile, a Malaysian SME owner choosing an HR software provider might ask ChatGPT to compare payroll features, statutory contribution support, pricing and integration options.

The second situation creates more opportunities for conversation-based advertising.

How Can You Check?

• Customer Feedback: Ask recent customers whether they used ChatGPT or another AI tool during their research.
• Sales Conversations: Find out what questions prospects ask before requesting quotations.
• GA4 Referral Traffic: Check whether visitors already arrive from ChatGPT, while recognising that some AI-influenced visits may not be identifiable.
• Customer Journey: Determine whether buyers normally research several solutions before contacting you.

If Yes: ChatGPT Ads could help you reach prospects during their research process.

If No: Prioritise channels where your customers already demonstrate buying intent.

2. Does Your Product or Service Require Research and Comparison?

Not every purchase involves extensive research.

A customer buying a RM12 phone cable may care mainly about price and convenience, they might head to ninjaZ or Shopee.

Someone purchasing RM20,000 worth of commercial kitchen equipment (like a coffee machine) will probably compare specifications, warranties, installation and ongoing maintenance costs.

ChatGPT Ads may offer more opportunities when customers need explanations before deciding. The longer the buying cycle, the more likely AI will be called upon to aid them.

Consider these business examples:

Businesses selling complex, expensive or highly differentiated products may have more opportunities to communicate their advantages, like pricing, better warranty, etc.

Nevertheless, lower-priced products aren’t automatically unsuitable. Ecommerce brands may still benefit when customers frequently compare features or seek recommendations.

If Yes: Your customer journey may naturally align with ChatGPT’s conversational environment.

If No: Evaluate whether another channel reaches customers more efficiently when they’re ready to purchase.

3. Can ChatGPT Ads Help You Achieve Your Marketing KPIs?

A marketing campaign is only worthwhile if it contributes to a meaningful business objective.

For marketing managers (yes we’re calling you out), that usually means more than impressions or website visits.

Common KPIs include:

• Cost Per Lead (CPL): How much you spend to generate an enquiry.
• Cost Per Acquisition (CPA): How much you spend to achieve a defined conversion.
• Customer Acquisition Cost (CAC): The cost of acquiring a paying customer.
• Return on Ad Spend (ROAS): How much revenue advertising generates relative to media spend.
• Qualified Leads: Enquiries that meet your sales team’s requirements.

Suppose a Malaysian B2B company spends RM6,000 monthly on advertising and generates 40 qualified enquiries.

Its cost per qualified lead is RM150.

If ChatGPT Ads produces 30 enquiries at RM100 each but only five meet the sales team’s requirements, its qualified-lead cost would be RM600.

The apparently “cheaper” channel could therefore deliver worse business results.

Before launching, identify your main KPI and the result you would consider acceptable.

If Yes: You have measurable outcomes against which ChatGPT Ads can be evaluated.

If No: Define your marketing objectives before investing in another platform.

4. Is Your Profit Margin High Enough to Support Another Advertising Channel?

Advertising only makes financial sense when the revenue or long-term value generated can justify the cost of acquiring customers.

Let’s give an example of two businesses with different profit margins.

The B2B company has more room to experiment with advertising because each customer generates a higher contribution margin.

However, this is where a customer lifetime value (CLV) also matters.

An ecommerce retailer may recover its initial advertising cost through repeat purchases, while a SaaS business may earn revenue from monthly subscriptions.

To determine how much you can afford to spend acquiring a customer, use this simplified formula:

Maximum Affordable CAC = Expected Customer Contribution Value − Required Profit

For example, if a customer is expected to generate RM1,000 in contribution over their lifetime and you want to retain RM400, your maximum acquisition budget would be RM600.

What Your Answer Means:

If Yes: Your margins give you enough financial flexibility to experiment with ChatGPT Ads.

If No: Improve profit margins, customer retention or existing advertising efficiency before increasing acquisition costs.

5. Are ChatGPT Ads More Expensive Than Your Existing Paid Campaigns?

Google Ads, Meta Ads and ChatGPT Ads use different delivery systems, audiences and optimisation methods.

OpenAI supports CPC, CPM and conversion-optimised campaigns.

For standard CPC campaigns, it currently recommends beginning with a maximum bid of approximately US$3 to US$5 per click. (Just a recommendation)

Instead of focusing entirely on CPC, compare the cost of achieving your actual business objective.

For example:

Despite its higher CPC, ChatGPT Ads would have a lower cost per conversion in this example.

That doesn’t necessarily mean it’s more profitable. Lead quality, sales conversion rates and customer value still matter.

If Yes, ChatGPT Ads Costs More: Compare downstream conversions and customer acquisition costs before rejecting it.

If No, ChatGPT Ads Costs Less: Check if the cheaper traffic produces equally valuable customers. Not all leads are quality after all.

6. Should You Move Budget From Google Ads or Meta Ads to ChatGPT Ads?

If your current advertising campaigns are profitable, replacing them with ChatGPT Ads simply because the platform is new is just risky, and we don’t even recommend it.

Suppose your business spends RM20,000 monthly on Google Ads and generates RM100,000 in attributed sales.

Moving RM5,000 into ChatGPT Ads means reducing spending on a channel with an established track record, tak bagus.

In most cases, you would redirect spending from campaigns that are consistently underperforming.

However, if your Google Ads campaigns have reached a point where additional spending no longer generates profitable conversions, testing another channel becomes tempting.

Before reallocating, ask:

• Are existing campaigns meeting their CPA or ROAS targets?
• Can they generate additional conversions if spending increases?
• Are rising advertising costs affecting profitability?
• Is there a customer segment your current campaigns aren’t reaching?

If Yes, Existing Campaigns Are Performing Well: Protect profitable spending and test ChatGPT Ads separately where possible.

If No: Consider if ChatGPT Ads offers a better alternative to underperforming campaigns.

For information, check our ChatGPT Ads vs Google Ads guide!

7. Is Your Landing Page Ready to Convert ChatGPT Ad Traffic?

Getting people to click is only half the job, making them stay is a little harder.

Imagine an accounting firm advertising to SME owners who are comparing outsourced accounting packages.

The visitor clicks its advertisement but arrives at a generic homepage with no pricing guidance, service explanation or clear enquiry button.

Even if the advertisement reaches the right person, the website may struggle to convert them because what the heck are they supposed to do?

A good landing page should clearly explain:

• The Offer: What the product or service does and who it helps.
• The Value: Why customers should choose it.
• Trust Signals: Relevant testimonials, credentials or case studies.
• Next Step: A clear quotation form, booking button or enquiry option.

For Malaysian service businesses, accessible WhatsApp enquiries help immensely but make sure you set up conversion trackers.

If Yes: Your website is better prepared to turn advertising traffic into measurable opportunities.

If No: Improve landing-page relevance and conversion performance before paying for additional visitors.

8. Can You Track Leads, Sales and Revenue From ChatGPT Ads?

Marketing managers need to explain where advertising money goes and what it produces.

The good news is that ChatGPT Ads now supports conversion measurement using OpenAI’s Pixel and Conversions API, along with reporting for clicks, impressions, spending and attributed conversions.

Businesses can also use UTM parameters to analyse campaign traffic through existing analytics tools.

For example, a dental clinic could track:

• How many visitors arrive through ChatGPT Ads.
• How many submit appointment enquiries.
• How many enquiries become confirmed appointments.
• How much revenue those appointments generate.

Where relevant, the clinic must also make sure its advertising and conversion measurement comply with applicable healthcare advertising and privacy requirements.

Importantly, an attributed conversion isn’t necessarily an additional conversion. Some customers may have purchased through another channel anyway.

If Yes: You can evaluate advertising performance using reliable conversion and sales data.

If No: Prioritise tracking implementation before launching significant campaigns.

9. Can You Afford to Run ChatGPT Ads as an Experiment?

A new advertising channel rarely produces predictable results immediately.

You’ll need a sufficient budget to do A/B testing, otherwise you’re just throwing money into the void hoping something echoes back.

You don’t need a large budget either, let’s say you’re doing a RM3,000 testing budget.

At an average CPC of RM15, that produces approximately 200 clicks. With a 5% conversion rate, those clicks would generate 10 conversions at RM300 each.

If your allowable acquisition cost is RM150, the campaign would need substantial improvement to become commercially viable.

Again these numbers are purely illustrative, but they help paint a picture.

Before launching, decide:

• Budget Limit: How much can the business afford to lose during testing?
• Test Period: How long will you evaluate results?
• Success Threshold: What CPA, lead quality or revenue level justifies continued spending?
• Stop Condition: When should the campaign be paused or reconsidered?

Use a campaign-total budget if you want a stricter overall spending limit.

If Yes: You can run a controlled experiment without threatening essential marketing activities.

If No: Continue improving established channels until a suitable testing budget becomes available.

10. Will ChatGPT Ads Deliver Growth You Cannot Already Get From Existing Channels?

A Malaysian SaaS provider may already reach customers searching Google for its brand.

If ChatGPT Ads simply attracts those same customers through another paid channel, the company might increase advertising spending without acquiring many additional customers.

It’s a bit like pulling the same stones from the same pool, you want a bigger pool, a pond even!

Conversely, ChatGPT Ads may help the business reach SME owners researching operational problems before they’ve shortlisted software providers.

That would make the channel more valuable as a source of new demand.

One early US example comes from Dose, whose measurement experiment, reported by OpenAI, found that 67% of incremental purchases came from new customers. Again, might be a little bias since that is from OpenAI itself but it helps illustrate a point!

If Yes: ChatGPT Ads may deserve a place in your wider customer acquisition strategy.

If No: Continue investing in channels that produce stronger incremental growth.

Should You Test ChatGPT Ads Now or Wait?

Use your answers to the 10 questions to evaluate your business’s readiness.

Conclusion: Are ChatGPT Ads Worth Your Advertising Budget?

ChatGPT Ads may be worth testing, but not every business needs to invest immediately.

The right decision depends on your customers’ buying behaviour, profit margins, existing campaign performance and ability to measure results.

For Malaysian businesses with established marketing campaigns, ChatGPT Ads should be evaluated as an opportunity for additional growth rather than an automatic replacement for Google Ads or Meta Ads.

At Rankpage, our ChatGPT Ads services help businesses assess campaign suitability, plan advertising strategies and measure results against commercial goals. If you still don’t know if ChatGPT ads are right for you, give us a holler!

We’ll help you:

1. Assess Your Situation
2. Evaluate Feasibility
3. Identify Opportunities
4. Plan Your Next Move

We will also tell you “nope, not suitable” and come up with a solution that is catered to you.

There is no pressure to jump on the latest trend, a wait and see approach is still the best if you’re unsure.

Alternatively, if you REALLY think ChatGPT ads are 100% ngam ngam for you, we got you covered.

Frequently Asked Questions About ChatGPT Ad Spent

Are ChatGPT Ads Worth It for Small Businesses in Malaysia?

They may be worthwhile for SMEs with suitable customers, sufficient profit margins and a measurable acquisition objective. Businesses operating on tight budgets should first ensure their existing marketing activities are delivering acceptable results.

What Is a Good Starting Budget for ChatGPT Ads?

There is no universally suitable budget. Work backwards from your acceptable acquisition cost, expected conversion rate and the number of conversions needed to evaluate performance. Check current Ads Manager eligibility, minimums and bid guidance before committing.

Can ChatGPT Ads Generate B2B Leads?

Yes, they can be used for lead generation. B2B companies selling software, professional services or industrial solutions may find conversational research relevant to their buyers. However, actual lead volume and quality depend on campaign execution and audience fit.

How Long Should You Test ChatGPT Ads Before Deciding?

A 30-day test can provide initial insights, but an adequate evaluation depends on spending, traffic volume, conversion data and sales-cycle length. B2B companies with longer sales cycles may need additional time to assess revenue outcomes.

Do ChatGPT Ads Guarantee That Your Brand Will Be Recommended?

No. ChatGPT Ads appear separately from ChatGPT’s generated answers. Advertising does not guarantee that the AI will recommend your brand organically or display your advertisement for a particular question.

Should You Invest in ChatGPT Ads or SEO First?

Businesses needing immediate paid exposure can evaluate ChatGPT Ads, while SEO builds organic search visibility over time. The better investment depends on your goals, available budget and existing performance. For many businesses, the two channels serve complementary purposes.