On Friday 19th June 2026, OpenAI officially started rolling out its self-serve ChatGPT Ads Manager Beta to advertisers here in the UK.

OpenAI is giving brands early access to get hands-on with the platform, map out account structures, and understand the workflow before the ecosystem gets crowded. There’s no upfront billing information required just to look inside, meaning brands can test the waters and get a feel for the platform with zero initial friction: https://ads.openai.com/

This has opened up an entirely new frontier for local businesses. Because users treat ChatGPT as a research assistant rather than just a search engine, the ad landscape looks very different from traditional platforms like Google or Meta.

If you are a local business and considering testing this brand-new ads platform before your competitors do, there are a number of opportunities and threats to bear in mind:

The Opportunities & Advantages

High-Intent “Decision Layer” Targeting

When people search for local services on Google, they often look for quick, transactional terms (e.g., “plumber near me”). On ChatGPT, queries are conversational and deep in the research phase (e.g., “I have a historic home with low water pressure, what are my options?”).

• The Advantage: OpenAI’s platform allows you to target these specific conversational contexts. An ad for a local plumbing or engineering service appearing at that exact moment puts you in front of a highly qualified lead who is already leaning toward a purchase decision.

Lower Early-Adopter Competition

Because the self-serve platform is relatively new, most local competitors are still putting 100% of their budget into Google Ads, Local Services Ads or Facebook.

• The Advantage: Early adopters face less bidding competition for localised conversational terms, which can result in high-quality, intent-driven traffic before the market becomes saturated and expensive.

Native, Non-Intrusive Integration

Unlike pop-ups or heavy banner ads, ChatGPT ads on the free and “Go” tiers are designed to sit natively below or adjacent to the AI’s text response, clearly labeled as sponsored.

• The Advantage: Because the ads mirror the helpful, problem-solving tone of the conversation, users who interact with them often exhibit lower cross-out (dismissal) rates and higher engagement compared to traditional display networks.

The Threats & Risks

High Cost-Per-Click (CPC) & Budget Volatility

Early data from marketers testing the self-serve platform shows that traffic on OpenAI can occasionally be up to 3 to 5 times more expensive per click than standard Google Search terms. 

• The Problem: Because the inventory is tighter than Google’s massive network, bids can spike quickly. For a local business with tight margins, a few accidental or poorly targeted high-CPC clicks can wipe out a daily budget. Each campaign also has a minimum budget of £15 per day (though it may not spend the full £15 if there isn’t enough demand)
  

The Attribution “Black Box”

Tracking the return on investment (ROI) for a local business on ChatGPT is notoriously difficult.

• The Problem: A user might chat with the AI on their desktop, see your local service ad, close the tab, and call you from their phone two days later. Standard analytics platforms struggle to map this journey. Without using highly specific landing pages, tracking parameters (UTMs), or unique promo codes, local businesses run the risk of flying completely blind on whether their spend is actually driving foot traffic.

Total Loss of Brand Context Control

When you buy a Google Ad, you dictate the exact headline and description copy. While ChatGPT ads allow you to upload specific headlines, the AI matches them dynamically based on the conversation’s context.

• The Problem: You cannot entirely control the surrounding text the AI generates. If the chatbot gives a slightly off-base or legally sensitive answer regarding a local service (e.g., giving questionable home repair advice) and pairs your ad directly beneath it, your brand can suffer from guilty-by-association reputational damage.

Fragmented Local Scale

While hundreds of millions use ChatGPT, a vast majority of everyday local consumers still automatically default to Google Maps or Apple Maps when looking for immediate local businesses with a physical destination (restaurants, mechanics, dry cleaners). If your target demographic is heavily localised or older, the active user base searching for local recommendations via an AI chatbot might still be too small to justify a dedicated ad spend.

• The Problem: Upon launch, the geo targeting options are very minimal – aka UK only. For US advertisers this is slightly better as advertisers can define which State they want ads to show in (see screenshot) – but regional or English county setup is not an option in the interface yet. I’d hope this would improve over the next few months.

Best Practices for Local Rollout

If you decide to test the waters, treat ChatGPT ads as a supplement, not a total replacement for your local SEO or Google Ads/Local Services Ads marketing tactics.

• Bid on Intent over Keywords: Instead of targeting broad terms like “accounting firm,” target conversational Context Hints like “how to set up an LLC for a small contracting business in [City].”
• Hygiene First: ChatGPT pulls from across the web to understand your business. Ensure your Google Business Profile, directories, and website data (Name, Address, Phone Number) match perfectly so the AI accurately references your location.
• Cap Budgets Strictly: Set strict daily budget caps and maximum CPC limits inside the OpenAI Ads Manager to protect yourself from sudden bidding spikes.
• Bid strategy: At the time of writing (June 2026) only Reach and Click objectives are live. Keep checking the interface to find out when Conversion-based bid strategies are live.

Traditional search engines rely on keywords – exact strings of text a user types into a search bar. OpenAI’s self-serve Ads Manager fundamentally flips this script. Instead of bidding on individual words, you target conversations using Context Hints.

Understanding this difference is critical for a local business to avoid wasting money on irrelevant, high-CPC (cost-per-click) traffic.

 

🔍 Context Hints vs. Traditional Keywords

The shift from keywords to context hints is a move from literal matching to semantic intent (understanding the meaning behind the conversation).

Feature	Traditional Keywords (Google Ads)	Context Hints (OpenAI Ads)
Matching Logic	Literal: The system matches strings of text (e.g., “roof repair”) to what the user typed.	Interpretive: The AI reads the entire ongoing conversation to evaluate the user’s situation and intent.
Control	High: You use broad, phrase, or exact match types, alongside negative keywords to block bad traffic.	Guidance-based: Hints are suggestions. The AI uses them as signals along with your landing page content to determine fit.
User State	Transactional: Usually looking for a quick link, location, or direct answer.	Research Mode: The user is deeply exploring a multi-step problem, comparing options, or asking for advice.

Instead of guessing a specific search phrase, you use a plain-language sentence to describe the exact scenario, problem, or decision-stage your customer is in when they need you.

 

✍️ How to Write Context Hints for Local Businesses

The biggest mistake a local business can make is writing context hints that simply describe their business category (e.g., “We are a local dental clinic”). ChatGPT already knows what you are; instead, you need to describe the user’s situation.

 

Use these rules to craft context hints that convert:

1. Write from the Customer’s Perspective

Focus on the problems, anxieties, or projects a user is actively discussing with ChatGPT.

• ❌ Bad Hint: Affordable local plumber (Too generic, treats it like a keyword).
• ✅ Good Hint: I have boiler model XXXXX: why is my water pressure low?

2. Tailor to the “Research” Phase

People use AI to figure out how to do things or what something means before they hire a professional. Capture them in that exact moment.

• ❌ Bad Hint: Family law solicitor
• ✅ Good Hint: What is the legal process for child custody mediation or drafting a separation agreement in the UK

3. Blend in Local Intent Signals

While OpenAI utilises geographic campaign targeting to ensure your ads serve only to users in your specified area, your context hints should describe a user trying to solve a physical, real-world local problem.

• ❌ Bad Hint: dishwasher repair company in Manchester
• ✅ Good Hint: A homeowner trying to troubleshoot why their dishwasher is leaking or glasses still gritty.

So, what do you think? Is testing ChatGPT ads in your marketing plan for 2026 and 2027?

If so, ChatGPT Ads are now open for UK advertisers: https://ads.openai.com/ or to discuss outsourcing ads setup and management, email hannah.zoramarketing@gmail.com

Hannah walks Rob and Jonny through the real differences between Google Ads and LinkedIn Ads, breaks down how Local Service Ads work and who they’re best suited for, and calls out the most common mistakes small business owners make when spending their ad budget. Spoiler: you’re probably wasting money somewhere.

We also get into AI; how is it changing the game for local businesses, and how you can use it to your advantage without needing a massive marketing team or budget behind you.

Whether you’re running a bricks-and-mortar shop or a service-based business trying to get found locally, the episode is full of straight-talking strategies to help you spend smarter and get better results. Listen here, or read-on below!

Local Services Ads or traditional Google Ads – which platform do I start with?

Local Services Ads (LSAs) are designed to be a straightforward, low-touch lead feeder for specific service providers. They can be setup in isolation, or used in conjunction with traditional Search ads setup within the Google Ads interface.

Feature	Local Services Ads (LSAs)	Traditional Google Search Ads
Bidding Model	Pay-per-lead (CPL), not cost-per-click.	Pay-per-click (cost-per-click bidding, or smart bid strategies such as target cost per lead / maximise conversions or target ROAS / maximise revenue
Targeting	Uses your Google Business Profile, service selection, and radius/area.	Targets users based on keywords, demographics, and location settings.
Best For	Tradespeople, locksmiths, moving services, plumbers, handymen, service providers, or anyone working from home (ideally one or two-person businesses).	Businesses wanting to capture demand from specific keyword queries.
Lead Capture	Message or call, tracked via the Local Services Ads platform, delivering contact info straight to the business.	Requires robust conversion tracking (form fills, calls) to measure performance.

A key benefit of LSAs is the cost-per-lead model, which is a “no-brainer” for tradespeople on a tight budget, as ads only appear when people are actively requesting that service (e.g., “plumber near me”). Cost-per-lead is determined by the demand and competition within your selected service area.

Driving Footfall for Physical Stores with Performance Max

For businesses with physical locations – especially e-commerce retailers who also want in-store visits – Google’s Performance Max (PMax) is the primary ad format to drive footfall traffic.

• Google Maps Visibility: PMax is the main format for launching ads directly on Google Maps, which is critical since modern search behavior means users no longer need to type “coffee near me” but can simply type “coffee” into Maps.
• Promoted Pins: If you open Google Maps, a square pin indicates a promoted PMax ad, while round pins are organic listings.
• Quantifying Value: PMax footfall campaigns are a “game changer” for hospitality and retail. They provide a way to see how many people searched, clicked the ad, and then visited the location, allowing the business to place a quantifiable value on the ad activity (e.g., if the business knows the average spend per person).

Caveat on Store Visit Tracking

Google is often vague on the eligibility criteria for setting up in-store tracking. Eligibility is based on having enough footfall and location data to ensure the tracking remains anonymous (full details direct from Google here). Businesses in busy city centres generally qualify faster than those in low-traffic areas like trading estates.

Critical Mistakes to Avoid

The single most costly mistake Hannah frequently sees is incorrect location settings.

“When setting up your campaign, ensure you choose “Presence only” instead of “Presence and Interest” she says.

Selecting “Presence and Interest” means your ads will show to users interested in visiting your area, not just those who are physically there. This can result in “wasted spend from around the world” and should be fixed immediately.

The Future of Local Search: AI and Conversational Results

The rise of conversational AI chatbots (like ChatGPT and Gemini) is expected to impact local search.

• Opportunity over Threat: AI is likely to introduce new ad platforms (i.e. advertisers can register their interest for ChatGPT ads here), challenging Google’s monopoly and giving local businesses more sources for leads.
• Conversational Advantage: AI handles conversational queries better than traditional search. If a user asks for the “best plumber near me” or “highly rated,” AI platforms are expected to synthesize reviews and data from multiple sources (like Trustpilot, Feefo, etc.) to provide one definitive answer, offering a more personal approach.
• Adapting: Businesses must be prepared to “move with the times” and adapt their strategy to leverage these new AI-driven platforms.

To chat to Hannah about mastering your local ad campaigns, contact her via email: hannah.zoramarketing@gmail.com

Hannah Strong, founder of Zora Marketing joined 50 female founders from across the North East for an evening with the Chancellor; all recognised for the role they are playing in building and growing businesses across the region.

The room was crammed with world-class innovators across tech, creative industries, and professional services, but the underlying theme was that these women – through geography alone – didn’t have the same access to investment compared to other parts of the country.

As Sophie Milliken put it on the night, the barrier has never been ambition, it’s been access. That’s something that resonated across the room because it’s a reality for many founders. Hannah’s key takeaway from Sophie, Kim McGuinness, and Rachel Reeves was one of HOPE; that investment and belief in the capabilities of Northern women has been ignored for too long, but change is already afoot.

Hannah said: “There’s a huge amount of creative energy in the North East, and I love being a part of it. I’m frequently found at the North Tyneside Business Forum and Factory events, City Ladies at the Hilton in Gateshead, the North East Charity Freelancer bi-monthly co-working group, and the North East Freelance Network (the most supportive freelance community going), so I like to get out and about as much as I can!

There is a real sense that people are building things that matter, often alongside everything else life brings. I even bumped into Abigail Reid (Merwave founder) at the event, whom I last met 4 years ago at a Whitley Bay stay’n play with our toddlers! It was proof that many women in the room are also mothers out to change the world around changing nappies. Many of these businesses are being run around school runs, client work, and day-to-day commitments, and still managing to grow. It’s not always the version of entrepreneurship that gets talked about, but it’s a big part of what’s driving the region forward.

Although I’m from the Lake District originally, I’m now an honorary Geordie, and being invited to spend the evening amongst such an esteemed group of women was incredibly inspiring. I even chatted to Kim McGuinness about this very topic – pushing for the BIPC scheme to be rolled out to Durham and Tees Valley too.”

From a Zora Marketing perspective, the message of regional potential is clear every day. Through her Experts in Residence role at the BIPC, Hannah sees first-hand how many brands are seeking access to business support to scale their operations. The focus of the BIPC is to safeguard and create new roles, and the sheer demand for both the Citylife Grants (12hrs 1:1 support with an Expert) and their local networking events (held from Northumberland to Sunderland) demonstrates just how much entrepreneurs are clambering to take advantage of North East Combined Authority opportunities.

Managing Google and LinkedIn ads for local brands and BIPC North East clients gives Hannah a direct insight into how ‘ready to scale’ these businesses are. They’re not trying to get going; they’re already scaling, already delivering results, and already building momentum.

Being invited to Downing Street reflects the quality of the businesses here, including Zora Marketing, but the real value will come from what follows: the conversations that continue, the opportunities created, and the investment in female-founded businesses that will hopefully grow from strength to strength.

Hannah gave a huge thank you to City Ladies Networking and Natalie Turner for bringing it all together, and for creating the kind of space where those conversations can happen properly.

If you’re a North East business looking to grow and want support with Google or LinkedIn ads, Zora Marketing works closely with brands at that stage, helping turn what’s already working into something that scales.

You can get in touch directly at: hannah.zoramarketing@gmail.com