AI or DIE. Don't Make ChatGPT Ads Your Next Paid Ads Money Pit

Bassem Ghali

Bassem is a digital marketing, SEO, and AI strategist with more than 22+ years of experience managing online marketing strategies for some of Canada's and international corporations, including Canadian Tire, VistaPrint, Remax Canada, Egypt Air, Xplornet, Direct Energy, and Toronto Star.


Key Takeaway: ChatGPT Ads can become a powerful growth channel, but they should never be your first AI investment. First, eliminate revenue leakage, build an AI-ready digital foundation, and earn organic AI visibility. Then use ChatGPT Ads to amplify a strategy that's already working.

OpenAI recently invited Green Lotus to participate in the ChatGPT Ads beta. It's an exciting milestone, but my first reaction wasn't excitement. It was déjà vu.


I've seen this movie before.


Twenty years ago, businesses rushed into Google Ads believing more advertising would solve their growth problems. Too many ended up spending more money without fixing the fundamentals. My concern is that ChatGPT Ads are about to follow the exact same path.


That may sound strange coming from an agency that offers paid advertising services. We believe in paid media, and we've seen the impact it can have when it's introduced at the right time. The problem has never been advertising itself. The problem is treating advertising as the strategy instead of an extension of it.


At Green Lotus, we have a phrase for businesses that rely on advertising before fixing the fundamentals. We call it donating money to ChatGPT & Google. They respond to declining sales by increasing budgets instead of improving operations. They buy more clicks instead of fixing conversion problems. Running ads on a bad foundation simply makes them more expensive.


That's why I'm cautious about the excitement surrounding ChatGPT Ads. I don't doubt they'll become an important advertising platform. I also don't doubt that many businesses will rush in before they're ready.


The businesses that get the most value from ChatGPT Ads won't be the first ones to buy them. They'll be the ones that have already built a business worth recommending.


If AI Won't Recommend You Organically, You're Solving the Wrong Problem

People don't open ChatGPT because they're looking for another place to see ads. They open it because they want an answer. Whether they're choosing software, comparing suppliers, or looking for an agency, they're asking ChatGPT to point them in the right direction.


That's why I think so many businesses are asking the wrong question.


Since ChatGPT Ads were announced, the conversation has been about how to advertise inside ChatGPT. I'd rather understand why ChatGPT recommends one business and ignores another. That's a much more valuable question because the answer doesn't depend on an advertising budget.


Before spending money to appear alongside ChatGPT's answers, I'd want to know why my business isn't already part of those answers. If your competitors are being recommended while your brand is rarely mentioned, buying ads doesn't solve the underlying problem. It simply pays for exposure while the recommendation still belongs to someone else.


That's why I continue to believe organic AI visibility comes first. Businesses that are consistently recommended have already built authority. ChatGPT Ads can amplify that authority, but they shouldn't be responsible for creating it.


Every Marketing Channel Has an Order

One of the biggest mistakes businesses make is starting with advertising simply because it's the easiest place to spend money. Traffic increases almost immediately, but the business behind it hasn't changed.


That's why ChatGPT Ads don't change our strategy at Green Lotus. If anything, they reinforce it.


Long before ChatGPT Ads existed, we built our client strategies around four priorities.


  1. Stop revenue leakage with Agentic AI. Before generating more demand, make sure you're capturing the demand you already have. Missed phone calls, abandoned carts, delayed responses, and forgotten follow-ups all represent revenue that should never have been lost in the first place. Agentic AI helps close those gaps before you invest in acquiring more customers.
  2. Build a digital foundation AI can understand. Your website is no longer communicating with people alone. Whether it's a Smart Site or a Shopify store, it also needs to communicate clearly with AI. Structured data, accurate business information, and well-organized content all make it easier for AI to understand what you do and when to recommend you.
  3. Earn organic AI visibility through AI SEO. Before paying to appear in ChatGPT, work toward becoming one of the businesses ChatGPT recommends naturally. The same principle applies across Gemini, Claude, and every other major AI platform. Organic recommendations build authority that no advertising campaign can replace.
  4. Use ChatGPT Ads to amplify what already works. This is where ChatGPT Ads belong. Once your operations, digital foundation, and AI visibility are working together, paid advertising becomes far more effective because it's expanding something that's already working instead of trying to compensate for something that isn't.


ChatGPT Ads deserve a place in every modern marketing strategy. I just don't think they deserve to be the starting point. Businesses that focus on operations, digital infrastructure, and organic AI visibility first will get far more value from paid advertising than businesses that treat ChatGPT Ads as the strategy itself. The order matters. 


Don't Buy What You Haven't Earned 

Green Lotus will absolutely experiment with ChatGPT Ads. We have early access, and we'll test where they create meaningful value for our clients. There will be businesses that benefit tremendously from this platform.


But early access doesn't change our recommendation.


We won't recommend ChatGPT Ads to clients who haven't built the right foundation first. If a business is still losing leads, struggling with its digital foundation, or rarely being recommended by AI, advertising isn't the first problem to solve.


At Green Lotus, we're betting that AI recommendations will become more valuable than AI placements. That's why our strategy starts with Agentic AI, Smart Sites, Shopify optimization, AI SEO, Schema SEO, and GEO. ChatGPT Ads may become an important part of that strategy, but they don't change the order.


We may be wrong. But we'd rather prepare businesses for a future where AI chooses who to recommend than one where every recommendation has to be bought.


That's what AI or DIE means. The businesses that adapt first won't just keep up with change. They'll define it.