Back

UNTMD: Ads Are Now Inside AI Answers and Most Australian Brands Are Not Ready

UNTMD

Key Facts:

• Australian digital marketing agency UNTMD warns that most businesses have not adapted their Google Ads campaigns to account for advertising now appearing inside AI-generated search results on platforms such as ChatGPT and Google AI Overviews.
• ChatGPT ads launched in Australia on 17 April 2026, with self-serve buying opening on 22 May, making Australia one of the first markets outside the US to access the channel; WPP Media projects global AI-driven advertising revenue will grow from USD $5.1 billion in 2026 to $32 billion by 2028.
• ChatGPT ads are currently delivering a click-through rate of just 0.91 per cent in Australia, compared with a 6.4 per cent benchmark for Google Search in equivalent sectors, reflecting the structurally different nature of conversational AI queries versus traditional keyword search.
• UNTMD founder Maria Kathopoulis cautions that treating AI search advertising like standard Google Ads is a mistake, as the query format, ad placement, and user intent differ significantly, requiring creative specifically built for the context of an AI-generated answer.
• Brands that test early with purpose-built creative could gain a material advantage ahead of peak retail periods such as Black Friday, whilst those who repurpose existing search creative risk poor results and drawing incorrect conclusions about the channel's effectiveness.

SOUTH MELBOURNE, Australia — 29 October 2026 — UNTMD, a South Melbourne digital marketing agency, says the arrival of advertising inside AI-generated search answers has changed the paid search brief for Australian brands, and that most businesses running Google Ads campaigns have not yet adjusted their creative, targeting, or measurement approach to account for it.

ChatGPT ads went live in Australia on 17 April 2026 and self-serve buying opened on 22 May, making Australia one of the first markets outside the United States to access the channel. Google AI Overviews and AI Mode now carry ads through Google's AI-powered campaign products. WPP Media's mid-year forecast identified generative search as the biggest emerging force in Australian advertising, projecting global AI-driven advertising revenue of USD $5.1 billion in 2026, rising to $32 billion by 2028. The company has separated generative search into its own category for the first time.

The performance gap between the two channels is the critical context. ChatGPT ads are currently reporting a click-through rate of 0.91 per cent in Australia, against a 6.4 per cent benchmark for Google Search in equivalent sectors. Brands buying at what Adthena describes as premium TV rates and getting CTRs seven times below Google Search are not running a scalable direct-response channel. What they are running is an early presence play in a surface that is structurally different from keyword search: queries are conversational, answers are synthesised rather than linked, and creative that works in a text search result does not translate directly to a placement beside an AI-generated response. The measurement infrastructure is also still limited, with conversion tracking only added in the Australian market in May 2026.

"The mistake would be to treat this like Google Ads with a different name. The query is different, the format is different, and the intent at the point of ad exposure is different. Someone using AI Mode is asking a question and reading an answer, not scanning ten blue links. The ad sits beside that answer, not above it. Brands that test early with creative built for that context will have a material advantage by Black Friday. Brands that copy their search creative across will have poor results and conclude the channel does not work," said Maria Kathopoulis, founder of UNTMD.

UNTMD manages paid search and AI strategy for clients across construction, solar, education, health, and direct-to-consumer retail. The agency publishes quarterly benchmark data drawn from more than $147,000 of managed spend across 20 accounts.

About us:

About UNTMD

UNTMD is an Australian digital marketing agency providing integrated strategy, SEO, paid media, content, social media, PR, email, and brand services to growth-stage founders and scaling brands. The agency is based in South Melbourne and led by Maria Kathopoulis.

Contact details:

Media Enquiries

Peter Cayetuna

UNTMD

1300 009 111

[email protected]