Short answer
OpenAI selects ads in a relevance-weighted second-price auction. Eligible ads are ranked on expected relevance and outcomes together with bids, and the winner pays based on the next competitor rather than its own maximum. A more relevant ad can win at a lower bid.
What raises relevance
- Context hints that describe real needs
- A landing page that answers the conversation's question
- Titles and copy that match the hint
- Past outcomes from similar placements
Bid-strength guidance
Ads Manager shows whether a bid looks competitive or may limit delivery. Raising a bid doesn't guarantee delivery if relevance is low.
Questions
Do bigger brands always win?
Not necessarily: relevance weighting lets smaller advertisers compete when their ad fits the conversation better.
Facts checked against the sources below on 12 October 2026. Platforms change quickly: if something here no longer matches what you see, tell us and we will update it.
