Key Takeaways:
- AI advertising is no longer theoretical. It’s happening.
- OpenAI has announced plans to introduce advertising inside AI search experiences.
- This is not another channel. It’s a decision-engine moment.
- Companies that master AEO + AI ads early will dominate visibility.
- Brands that wait will be invisible even with great products.
- This shift will impact every president, CMO, and marketing director.
- Early AI testing = long-term advantage.
It’s finally happening.
For over a year, I’ve been saying this in this newsletter…
On stages at marketing conferences…
In boardrooms with presidents and CMOs…
AI would eventually become an advertising platform.
Not someday.
Soon.
That day is now close enough that ignoring it is no longer an option.
OpenAI has announced plans to accept advertising inside AI-driven search experiences.
That one sentence should stop you cold.
Because this is not just another platform.
This Is Not “Another Channel”
This is not social media.
Not Google search as we’ve known it.
Not display.
Not programmatic.
This is decision-stage advertising.
AI doesn’t just show links.
It gives answers.
Recommendations.
Shortlists.
And now…
Paid placement inside those answers.
That’s why this could become one of your most powerful and essential platforms.
Miss it?
You won’t just lose clicks.
You’ll lose sales.
Let me explain exactly what’s coming.
1. What AI Advertising Is (And Why It’s Different)
When someone asks an AI engine a question, they aren’t browsing.
They are deciding.
Example:
“What’s the best CoQ10 supplement for heart health?”
Or….
“What is best rare earth minerals stock?”
The AI responds with two or three recommended companies or products , supported by explanation and reasoning.
Now imagine this:
Even if your brand is not in the AI’s organic answer…
You can still appear on that page.
That is the breakthrough.
You’re no longer competing for attention.
You’re competing inside the answer.
2. Who Will See Ads (And Who Won’t)
Based on current guidance:
• Free and lower-cost OpenAI tiers will allow advertising
• Premium / paid tiers will likely be ad-free
While exact numbers are still emerging, early estimates suggest:
• The majority of AI users will remain on free or low-cost tiers
• Power users and enterprise users will skew paid
• That leaves a massive, commercially valuable audience exposed to ads
Translation:
This is not a niche audience.
It’s a scale audience with intent.
3. Expect Restrictions (Especially in Regulated Industries)
OpenAI has already warned there will be guardrails.
What exactly will be restricted?
We don’t fully know yet.
But early caution areas include:
• Financial services
• Healthcare
• Insurance
• Legal services
This will not stop advertising.
It will raise the bar.
Credibility, clarity, and compliance will matter more than ever.
4. How AI Ads Will Likely Appear
Based on early examples shared by OpenAI:
• Ads will be clearly labeled
• They will appear within or adjacent to AI answers
• They will feel contextual, not disruptive
• They will reward relevance, not hype
This matters.
Because ads that look like ads will likely underperform.
Here are some examples of AI ads:
5. AEO + Ads = The Real Opportunity
Here’s where it gets strategic.
Let’s say AI recommends three brands organically.
You’re not one of them.
In the past, game over.
Now?
You can advertise on that same result.
But here’s the catch…
If your product is not AEO-optimized, your ad credibility suffers.
AI rewards:
• Expertise
• Clarity
• Authority
• Structured answers
• Verifiable claims
This is why AEO (Answer Engine Optimization) is no longer optional.
6. Ad Strategy: What Will Actually Work
It’s too early for certainty.
But patterns are already clear.
My prediction?
The best-performing AI ads will:
• Look like helpful explanations
• Read like expert answers
• Educate first
• Sell second
• Sound like AI — not Madison Avenue
Think:
Advertorial-style answers.
Not banner ads.
Not hype.
Not slogans.
This is where direct-response copywriting becomes a weapon.
7. This Is a Mega-Trend (And It’s Spreading Fast)
Google Gemini has already signaled similar plans.
And it’s logical that:
• Microsoft Copilot
• X
…will follow.
Why?
Because advertising funds platforms.
And AI is becoming the front door to the internet.
This trend will not be stopped.
But it will reward early movers.
Action: What You Must Do Now
If growth matters to you…
If ROI matters…
If survival matters…
There are two immediate action steps.
Action Step #1: Dominate AI Answers (AEO)
Your company must appear in the top one or two AI answers for your category.
That requires:
• Proper AEO
• Structured authority content
• AI-friendly credibility signals
If you don’t know how to do this…
If you’re behind…
If it will take you too long…
Call Michael at CDMG now at 615-933-4647 or email him at [email protected].
We can get you up and running immediately.
Action Step #2: Start Testing AI Ads Early
Early advertisers gain:
• Lower competition
• Faster learning
• Preferential positioning
• Structural advantage
But only if ads are:
• Direct-response driven
• Informational
• AEO-aligned
• Trackable to ROI
Michael will show you how our digital / AI team at CDMG can do this right — so you don’t lose time, money, or this once-in-a-decade opportunity.
FAQs:
Q: Is AI advertising available everywhere yet?
Not yet. Early rollout is expected to expand rapidly.
Q: Will this replace Google Ads?
No. But it will redefine where high-intent decisions happen.
Q: Is AEO really that important?
Yes. Without AEO, your ads lose credibility and conversion power.
Q: Will this be expensive?
Early platforms historically offer lower costs and higher ROI.
Q: Should small and mid-sized companies care?
Especially them. AI levels the playing field for experts.
About Craig Huey:
Craig Huey is President of Creative Direct Marketing Group (CDMGinc.com), a 30-year leader in direct response advertising and multi-channel marketing. Under his leadership, CDMG has:
- Tested more than 10,000 digital marketing variables.
- Mailed over 10 million pieces of direct mail in the last year alone.
- Won more than 120 awards for marketing excellence.
Craig is also the publisher of Direct Marketing Update, the trusted newsletter for company presidents and marketing directors looking to maximize ROI with cutting-edge, accountable advertising strategies.
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Let us be your second opinion
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- Proven Success: 120 prestigious awards in 2024 alone.
- Data-Driven Strategy: We don’t guess. We know what works. Our campaigns are crafted with precision to deliver maximum ROI.
- Expertise Across the Board: From media buying to digital copywriting, testing, and direct-to-consumer strategies—we’ve got it all covered.
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…and much more!
Our team has launched new products… and helped reposition companies to a higher level. Our strategies and tactics have generated leads, and built powerhouse e-commerce programs that have helped turn small businesses into multimillion dollar success stories and grown large companies.
Our formula is data driven, accountable advertising that supercharges your growth. Every campaign is crafted precisely, focusing on what matters most to drive your success.
Let’s discuss your marketing challenges and give you a second opinion.
Contact Michael Oppenheimer at 615-933-4647 or email him at [email protected].
Start transforming your marketing results today with CDMG, Inc.