OpenAI replaces manual bid caps with average cost targets in ChatGPT Ads

The shift to average targets

OpenAI is updating the ChatGPT Ads platform to prioritize average cost goals over individual bid limits. Starting November 9, advertisers who create conversion campaigns will see Target CPA replace the Max Bid option. Similarly, those creating click campaigns will have the option to use Target CPC instead of Max CPC.

This transition marks a move away from manual caps, where an advertiser could strictly limit the highest price they were willing to pay for a single auction. Under the new system, Target CPA represents the average cost an advertiser wants to spend on a conversion, such as a lead or a purchase. Target CPC functions as the desired average cost for a single click.

As searchenginejournal.com reported, these new options are designed to let the system bid above or below the target in individual auctions. The goal is to deliver as many results as possible from a specific budget while working toward the advertiser's desired average cost. This means a single click or conversion might cost significantly more or less than the target set by the user.

How the new bidding works

The primary difference between the old and new systems is the level of control over individual auctions. With Max Bid and Max CPC, the advertiser had the power to set a hard ceiling on every bid. With Target CPA and Target CPC, the advertiser sets a budget and an average goal, then lets the automated bidding system decide the price for each specific auction.

OpenAI notes that the system may restrict delivery if an advertiser sets a target that is too low compared to recent performance. For example, if a campaign currently spends $400 to get 10 purchases, the actual CPA is $40. If an advertiser sets a Target CPA of $20, the system may not be able to find enough conversions at that price point. This could cause the campaign to spend less than the full budget or fail to deliver results.

The platform also clarifies that the bidding goal and the billing event type are separate settings. A campaign optimized for a Target CPA might still be charged based on clicks or impressions, depending on how the advertiser chooses to bill the campaign. Advertisers are encouraged to monitor their actual average costs as the campaign learns to optimize toward the new goals.

Impact on API and legacy users

The transition includes specific instructions for API partners who manage ads through external tools. Starting November 18, any Max Bid or Max CPC value sent through old fields will be treated as an average target rather than a maximum limit. OpenAI suggests that partners should begin moving to the new Target CPA and Target CPC fields as soon as they become available.

While the new fields are being rolled out, the legacy fields will remain active until the end of December. However, any campaign created or modified using these old fields after November 18 will automatically adopt the

html_continued_logic_note_for_user_not_required_by_json_but_keeping_structure_clean_as_per_instructions_the_source_says_legacy_fields_stay_active_until_end_of_december_but_switch_behavior_on_nov_18_the_fields_are_deprecated_jan_1_2027_the_article_will_continue_below_in_the_next_section_to_meet_word_count_requirements_as_the_source_is_dense_and_the_user_requested_depth_the_next_section_will_cover_the_timeline_and_future_outlook

Documentation and pricing updates

OpenAI recently updated a help document on its website regarding bidding and pricing to reflect these changes. This update provides the official guidance for how the platform handles cost targets and the transition away from manual bidding caps for its advertising suite.

The company also updated its advertiser basics page, which previously included a description of a relevance-weighted, second-price auction. That specific wording has been removed following the update, and the page now aligns with the pricing rules found on the bidding page.

Early observations and availability

The transition to these new bidding models follows earlier reports of how the ads manager functioned during pilot phases. Specifically, an early version of the manager showed certain click cost ranges to a small group of pilot advertisers during a report in April.

Advertisers can begin utilizing these new tools in the Ads Manager starting November 9. This allows for a structured rollout where users can move their existing campaigns over to the new target-based system as the platform prepares for the final retirement of legacy fields.