Updated ETGet the DI Daily by Email

AI news for e-commerce professionals, with our take on why it matters.

OpenAI swaps max bid caps in ChatGPT ads for average Target CPA and Target CPC

OpenAI swaps max bid caps in ChatGPT ads for average Target CPA and Target CPC
Image: Search Engine Journal

Legacy max-bid API fields start acting as average targets on November 18 and are deprecated January 1, 2027, Search Engine Journal reports.

Source: Search Engine Journal

ChatGPT Ads is replacing its Max Bid and Max CPC caps with average cost targets, Search Engine Journal reported, citing an OpenAI help document on bidding and pricing. From November 9, new conversion campaigns get Target CPA in place of Max Bid, and new click campaigns can use Target CPC. Max Bid and Max CPC stop applying to existing campaigns on January 1, 2027.

OpenAI's page describes the targets as averages, not per-bid limits, so a single click or conversion may cost more or less. Its example: $400 in spend and 10 purchases is a $40 actual CPA, and a $20 Target CPA does not mean the system can deliver purchases at $20. Spend may also fall short of budget if targets are too restrictive or conversion data is poor.

For API partners, a Max Bid or Max CPC value sent through the old fields to create a campaign or change an ad group's bid type becomes an average target from November 18. Legacy fields stay active until the end of December and are deprecated January 1, 2027. The page gives no date for the new API fields and does not say what target unconverted campaigns will get.

Search Engine Journal also noted that OpenAI removed earlier wording describing a second-price auction, and that the basics page still recommends starting CPC bids at $3 to $5. Microsoft made a similar move away from Max CPC on some new campaigns from October 1.

Read the full article at Search Engine Journal

Our take

Retailers testing ChatGPT ads lose a hard per-auction ceiling and will depend on OpenAI's bidding to hit an average, with some clicks priced above target.

  • Set targets from your recent actual CPA or CPC, as OpenAI advises.
  • Ask your API or agency tools which bid fields they send after November 18.
  • Switch campaigns yourself before January 1, since OpenAI has not said what target it will assign.

Was our take useful?

Key takeaways

  1. New ChatGPT ad campaigns use Target CPA or Target CPC from November 9
  2. Legacy max-bid API values count as average targets from November 18
  3. Max Bid and Max CPC end for all campaigns on January 1, 2027

Original reporting

Search Engine Journal

Read the original report

Published