Key Insights
- AI-driven advertising offers brands a fresh avenue for promotion, leveraging AI-generated responses.
- This will occur through sponsored suggestions, contextual mentions, and conversational recommendations.
- AI ads align with user intent and incorporate trusted brand entities, allowing LLMs to naturally introduce businesses within their responses.
- By targeting users at key moments in their decision-making process, AI ads can lead to higher-quality customer engagement.
- Users will benefit from more relevant, personalized, and helpful recommendations, making AI ads feel less intrusive.
- Over time, AI ads will likely outperform traditional search ads in terms of engagement quality.
- Marketers should act now to strengthen their brand identities, develop content-rich topics, and enhance visibility in AI-driven answer engines.
Introduction
If you’re in digital marketing, you’ve probably noticed a significant shift taking place. Search engines like Google, Yahoo, and Bing aren’t the only sources people rely on for answers anymore. Increasingly, users are turning to large language models (LLMs) like ChatGPT, Gemini, Claude, and Perplexity to help with everything from planning vacations to selecting business software.
This transition from traditional search engines to AI-powered answer engines marks a monumental change in online behaviour arguably as significant as the rise of mobile technology.
But here’s the catch: where people go, advertising follows. And that’s why AI-driven ads within LLMs are being actively developed.
What Is Artificial Intelligence?
AI, or artificial intelligence, refers to technologies that enable machines to mimic human thinking, learning, and actions. These systems are designed to:
- Analyze data
- Recognize patterns
- Perform human tasks, such as language understanding, problem-solving, and speech recognition
AI is a broad field that spans machine learning, deep learning, and more, with applications ranging from virtual assistants to autonomous vehicles.
Larry Page once envisioned AI as the “ultimate version of Google,” capable of truly understanding the web, grasping user intent, and delivering precise results.
What Is AI Advertising?
AI advertising is a new form of digital marketing that utilizes AI to optimize and automate ad campaigns, making them more personalized, relevant, and efficient. Through data analysis and machine learning, AI advertising:
- Understands consumer behavior and intent
- Predicts trends
- Automates processes like ad creation, targeting, and placement
What Are LLMs?
LLMs, or Large Language Models, are highly advanced AI systems trained on vast datasets to generate human-like language. They can perform a wide variety of tasks, such as:
- Generating text (blog posts, emails, reports, etc.)
- Summarizing long-form content
- Translating languages
- Answering general knowledge queries
- Assisting developers with code writing and debugging
On a more advanced level, LLMs can:
- Analyze large data sets for market insights
- Identify fraud or cybersecurity risks
- Understand and interpret images
- Perform complex math and logical tasks
- Break down complex problems into simpler steps
- Create visual data representations (charts and graphs)
While LLMs may seem new, their roots trace back to the 1960s, when MIT’s Joseph Weizenbaum developed the first chatbot, “Eliza,” kickstarting the field of Natural Language Processing (NLP).
The “large” in LLM refers to the immense datasets and billions of parameters used to train these models on linguistic patterns.
The Rise of AI Answer Engines
Launched in 1998, Google revolutionized how people search for information, dominating the online space for over 25 years. However, the rise of AI answer engines like ChatGPT, Gemini, Claude, and Perplexity is changing that.
While people still use Google (with an estimated 14-16 billion searches per day), many are now splitting their time across platforms, with AI-powered engines becoming their first choice for answers to everyday questions.
For instance:
- ChatGPT handles everything from travel tips to career advice.
- Gemini simplifies complex tasks with multimedia and real-time context.
- Claude emphasizes accuracy and trust.
- Perplexity offers fast, citation-backed results.
Rather than sifting through long lists of search results, users now increasingly rely on a single, concise AI-generated response, making these engines their go-to decision-making assistant.
What Does This Mean for Marketers?
With more people turning to LLMs for answers, digital marketers face a massive opportunity. The reach across platforms like ChatGPT, Gemini, Claude, Perplexity, Meta AI, and other LLMs easily exceeds 1 billion users surpassing many major social media networks.
Unlike social platforms, where users are passively scrolling, AI answer engines operate with intent, as users are actively seeking assistance.
For example, ChatGPT alone is expected to generate $25 billion in revenue by 2029, with a significant portion coming from AI advertising.
Early adopters of AI advertising will likely benefit from lower costs and more flexible ad placements, positioning themselves ahead of the curve in this new advertising cycle. Marketers should focus on building strategies that increase their chances of appearing in AI-generated responses.
How Will AI Ads Work Within LLMs?
AI ads within LLMs will differ significantly from the search and social ads you’re used to seeing on platforms like Google or Facebook. Instead of appearing alongside search results, AI-driven ads will be integrated within the responses generated by the AI engine.
Advertisers will “train” the AI to reflect their brand voice, and ad placements will be determined by bids. This system allows businesses to appear in contextually relevant responses at the moment when a user is actively seeking information or guidance.
As a result, AI ads will provide a more seamless, integrated, and personalized user experience compared to traditional ad formats.
H2: How Do AI Ads Differ from Traditional Search or Social Ads?
Traditional search and social ads are often viewed as interruptions, they typically appear beside, above, or between content. In contrast, AI ads are woven directly into the conversation or response that the user is already engaged with.
Rather than bidding on keywords or vying for attention in a crowded feed, advertisers will seek to engage users at a key moment of intent, when they are actively looking for help.
For instance, an AI might generate a response with a soft brand mention or recommend specific tools and services based on the user’s query. This new approach integrates content and promotion in a more natural, conversational way.
AI Ads vs. Traditional Search Ads vs. Social Media Ads: A Quick Comparison
If you’re still unclear about how AI ads differ from traditional search and social media ads, here’s a quick comparison to help clarify things.
What Will AI Ads Look Like on Different LLM Platforms?
While AI ads are not yet prevalent across most LLM platforms, experts anticipate they will begin rolling out in 2026. Here’s a glimpse of what AI ads might look like on platforms like ChatGPT, Google Gemini, Claude, and Perplexity.
ChatGPT Advertising
ChatGPT is poised to become one of the most significant advertising channels since Google Ads. While OpenAI hasn’t launched its full ad platform yet, a major rollout is expected by 2026. Here’s why:
- Expert Team: ChatGPT is hiring top-tier talent from Google, Meta, X, Amazon, and Snap, including Andrej Karpathy, former head of Tesla’s Autopilot.
- Testing Sponsored Recommendations: They’re already experimenting with sponsored content in select environments.
- Monetization Plans: OpenAI has confirmed advertising will be a key part of ChatGPT’s long-term strategy.
- Massive User Base: With around 800 million weekly users, 54–57% of whom are aged 18–34, ChatGPT presents an invaluable opportunity to reach tech-savvy, high-spending consumers.
- Revenue Potential: ChatGPT is projected to generate $25 billion in revenue by 2029, with AI ads playing a significant role.
What Will ChatGPT Ads Look Like?
Expect a mix of:
- Sponsored answers
- Sponsored suggestions
- Conversational ad units
Ads will appear when users inquire about specific products, services, or industries. ChatGPT’s ability to understand user intent and phrasing makes it a powerful tool for targeted advertising.
Example: If a user asks, “What’s the best CRM for a small business?” ChatGPT might respond with a helpful recommendation, including a sponsored CRM suggestion.
What Will ChatGPT Ads Cost?
Initially, beta access will likely be offered to enterprise partners. The cost may follow a “cost-per-answer” model, where advertisers pay for responses that feature their brand. Predictive advertising could determine which brands are shown, giving an edge to those with strong digital presence and optimized entity-based content.
Google Gemini Ads
Google has openly discussed integrating ads into the Gemini ecosystem. Sundar Pichai, CEO of Google, confirmed they are exploring “native ad concepts” within Gemini’s conversational interface, signaling that AI ads are on the horizon.
With over $75 billion invested in AI infrastructure and research, Google is positioning Gemini to become a major advertising revenue engine, complementing its existing ad systems.
What Will Google Gemini Ads Look Like?
AI ads within Gemini will be personalized across various touchpoints, including:
- AI-powered search results
- Conversational responses
- Integrated with Google Ads, making it easier for advertisers to expand into AI formats without needing to learn a new system
Although Gemini won’t replace traditional Google Ads, AI-powered ads will evolve the way ads are delivered, blending into the user experience.
Perplexity Advertising
Perplexity is the first AI answer engine to implement paid ads, launching its ad platform in November 2024. Brands like Indeed, Whole Foods Market, Universal McCann, and PMG were among the first to test the platform.
What Are Perplexity’s AI Ads Like?
Perplexity’s ads are designed to maintain a clean, user-friendly experience. Ad formats may include:
- Sponsored citations
- Recommended tools
- Product suggestions
- Business listings within answer summaries
The primary ad format on Perplexity is sponsored follow-up questions, which naturally extend the conversation after the answer has been provided.
Example: If a user asks about job hunting, a sponsored follow-up could lead them to explore job listings on Indeed. Similarly, asking for dinner recipes might trigger a follow-up with a suggestion to check out Whole Foods.
Claude Ads
Claude, developed by Anthropic, stands out from other AI platforms by not yet confirming plans to introduce ads. The platform remains focused on model development, safety, and API partnerships. However, considering its competitors are moving toward monetized recommendation systems, it’s likely Claude will eventually explore advertising options.
What Will Claude’s AI Ads Look Like?
Claude attracts a more technical, business-oriented audience, primarily from enterprise teams, developers, and organizations with large-scale API needs. If Claude eventually introduces ads, they will likely cater to B2B industries, such as:
- SaaS (Software-as-a-Service)
- Consulting
- Finance
- Education
- Enterprise software
Ads might focus on promoting tools, software, cloud platforms, infrastructure, and security products all fitting into the workflows of Claude’s business-centric users.
Why Should You Advertise on LLMs?
If you’re wondering why you should center your advertising strategy around AI ads on LLMs, here are three key reasons to consider:
- Scalability
AI advertising offers tremendous potential for growth, as ad revenue scales directly with the increasing user base. Unlike subscription-based models, there’s no upper limit on the reach, meaning your return on investment (ROI) can grow without constraints.
- Massive Target Audience
Since most LLMs offer free versions, millions of users access them regularly. For brands advertising on these AI-driven search engines, this means access to a vast audience without the usual intrusiveness of traditional ads.
- Data-Driven Refinement
With traditional search or social media ads, there’s often an element of guesswork involved in targeting and messaging. But with AI ads, campaigns are driven by user interactions, making them more relevant and personalized. This should lead to higher engagement and better conversion rates.
Which Businesses Will Benefit Most From AI Ads?
While many industries can benefit from AI advertising, certain sectors may experience more significant advantages. These include industries where users tend to rely heavily on research and personalized recommendations. Examples include:
- Finance
- Travel
- SaaS (Software as a Service)
- Home Services
- Healthcare
- Education
- Professional Services
- Insurance
- Real Estate
- Legal
This isn’t an exhaustive list, but it’s fair to say that industries requiring complex decision-making or building trust with users will likely see the biggest gains from AI ads.
6 Ways to Prepare Your Business for AI Ads on LLMs
AI advertising on LLMs is coming, and the sooner you start preparing, the better. Platforms like ChatGPT, Gemini, Claude, and Perplexity are already shaping how users search, compare, and make decisions. The work you do now will help position your brand for success when these paid placements fully roll out.
Here are six essential steps to get your business ready:
1. Strengthen Your Entity Signals Across the Web
LLMs rely on entity-based optimization, not just keywords, to understand and recommend businesses. To ensure your brand is seen as relevant, make sure your business details are consistent across all major platforms, including directories, reviews, and social profiles. This includes:
- Business name
- Address
- Core services
- Pricing details
- Product descriptions
The clearer and more consistent your entity signals are, the easier it will be for an LLM to identify your brand as a trustworthy recommendation.
2. Build Comprehensive, Helpful Content Hubs
LLMs favor content that demonstrates depth, authority, and expertise on a topic. If your content is too shallow or spread too thin, it will be less likely to be referenced. To build content hubs, start with keyword research and create content clusters around your core topics, such as:
- In-depth “how-to” guides
- Detailed industry guides
- Comparison articles
- Frequently asked questions (FAQs)
- Media explainers that answer your customers’ key questions
By strengthening these content hubs, you’ll increase the likelihood that AI engines will reference your brand, both organically and through paid placements.
3. Optimize Your Content for Answer Engines
Just as SEO is crucial for traditional search engines, Answer Engine Optimization (AEO) is becoming vital for LLMs. Here’s how to optimize:
- Break content into easily digestible sections
- Use clear, descriptive headings
- Keep explanations simple and use visuals
- Write compelling meta titles and descriptions
- Provide direct answers at the beginning of your content
This structure helps AI systems extract meaning efficiently and increases the chances that your content will be cited in AI-generated answers.
4. Boost Your Trust Signals
LLMs prioritize trust signals when deciding which brands to feature in their responses. These signals include metrics like:
- Customer reviews
- Social sentiment
- Consistency of information
- Quality of services
To enhance your trust signals:
- Actively encourage customer reviews
- Respond to feedback promptly
- Maintain transparent pricing
- Update service pages regularly
- Add case studies and testimonials
The more proof you can provide that your business is reliable, the more likely LLMs will view your brand as credible and trustworthy.
5. Track How Frequently AI Models Mention Your Brand
To understand your current AI visibility, search for your brand name and services in platforms like ChatGPT, Gemini, Claude, and Perplexity. Observe how your business is described. If the results are incomplete or inaccurate, you’ll know where to focus your efforts. Over time, improving these signals will help your brand be better positioned for future AI ad placements.
6. Set Aside a Testing Budget
AI ad placements on LLMs will likely roll out gradually, so early adopters may benefit from lower competition and more affordable placements. To be ready when the platforms open up in 2026, consider setting aside a testing budget to experiment with AI ads as soon as beta access is available.
Final Thoughts
AI advertising represents one of the most significant shifts in digital marketing in over a decade. As ChatGPT, Gemini, Claude, and Perplexity roll out paid ads, businesses that prepare now will reap the biggest rewards.
To get ready:
- Focus on building strong, authoritative content
- Strengthen your digital presence
- Enhance your entity signals
- Position your brand to take advantage of AI advertising on LLMs
The future of advertising is conversational, contextual, and powered by AI. If you’re looking for guidance on how to lead in this new era, reach out to the expert team at DigiTotal.
Frequently Asked Questions
How much will AI advertising cost on LLMs?
It’s hard to predict exact costs since most LLMs are still in the development phase for AI ads. Early projections suggest that many platforms will adopt a pricing structure similar to a combination of search and social bidding models. Initially, costs will likely be low due to limited competition, but as demand grows and LLM platforms standardize their ad auctions, prices are expected to rise over time.
Will AI ads work for my business?
AI ads are particularly effective for businesses that cater to intent-driven customers. Users of LLMs often ask direct, decision-making questions like where to go, what to buy, or which service to choose for a specific need. If your business already benefits from search or referral traffic driven by intent-based queries, you’re likely to see positive results from AI-driven ad placements.
When will ChatGPT ads launch?
Although the full ChatGPT ad platform is not yet live, the launch is expected around 2026, with early tests underway. Keep an eye on announcements from OpenAI for the official rollout date.
How do I get featured in AI responses without paying?
To get featured organically in AI responses, focus on building strong, authoritative content and optimizing your entity signals across the web. LLMs prioritize businesses that have consistent, clear information and demonstrate expertise in their field. Investing in SEO, content creation, and enhancing your digital presence will improve your chances of being recommended in non-paid responses.
What’s the difference between AI ads and traditional search ads?
Search ads appear on search engines like Google, Yahoo, and Bing alongside a list of websites. In contrast, AI ads are integrated directly within an answer or response generated by the LLM. One key difference is that traditional search ads are manually managed
marketers set keywords, bids, and audiences. On the other hand, AI ads are automated, using artificial intelligence to adjust targeting, bidding, and ad content in real-time for optimal performance.
How do I measure ROI on AI advertising?
ROI for AI ads on LLMs will be measured in a similar way to search and social media campaigns. Key metrics to watch include:
- Brand mentions
- Assisted conversions
- Traffic increases
- Lead quality
- Cost per acquisition
Some platforms may introduce new, platform-specific metrics like “response inclusion rate” or “suggested answer engagement,” which could also be valuable indicators of performance.
Do I need a separate strategy for each platform?
Yes, a separate strategy for each platform is recommended. Each LLM uses different datasets, ranking signals, and content formats. While maintaining a unified strategy is helpful, tailoring your content, messaging, and structure to fit each platform will significantly improve your chances of being featured in AI-generated responses.