Adding LLM Ads to Your Marketing Funnel: Should You Find New Budget or Move Money From Search?

Short answer: For most businesses, the right answer in 2026 is both, in a specific order. Fund a small test of chatbot ads like ChatGPT ads with new money, because the channel is young and you need clean measurement. Then reallocate from the lowest-value parts of your search budget, usually broad, informational and upper-funnel queries that AI answers now satisfy, once the test proves cheaper qualified leads. Don't cut your proven bottom-of-funnel search terms to fund an experiment. Most AI-related ad spend still runs next to AI answers on Google, not inside chatbots.

01First, what counts as an "LLM ad"?

"LLM ads" covers three different things, and they belong in different parts of your plan:

• AI search-adjacent ads: Example: Google Search ads shown above, below or inside AI Overviews; Where it sits in the funnel: Bottom and middle: people searching with intent
• AI conversational search ads: Example: Ads inside AI search conversations, such as Google's AI Mode formats in testing; Where it sits in the funnel: Middle: people comparing options
• Chatbot ads: Example: ChatGPT ads below an answer; Where it sits in the funnel: Middle: people researching and deciding in conversation

EMARKETER's 2026 forecast puts US AI ad spending at about $32 billion this year, rising to more than $68 billion by 2030. But 82.5% of 2026 AI ad spend is search-adjacent: traditional Google ads next to AI Overviews. Even by 2030, EMARKETER expects chatbot ads to be only about 8% of the total.

What this means for your budget: your existing Google Search campaigns are already "AI ads" for most of your spend. The new decision is mainly about chatbot inventory such as ChatGPT ads, and about how your search campaigns adapt to AI Overviews.

Why this decision is coming up now

• Buyers are researching in AI tools. SOCi's 2026 Local Discovery Index found 52% of consumers used an AI tool to research a local business in the past 30 days, up from 9% a year earlier.
• Search share is fragmenting. EMARKETER forecasts Google will earn 48.5% of US search ad spending in 2026, the first time in more than 20 years it falls below half, as retail media and AI take share.
• Chatbot ads became buyable. OpenAI opened a self-serve Ads Manager in May 2026, with campaign minimums starting at $25 a day. See our ChatGPT ads guide for how it works.

The framework: new budget, then reallocate

Step 1: Protect what's proven

List your search campaigns by cost per qualified lead or sale, not by clicks. Your best-converting, high-intent terms ("emergency plumber near me", "engagement ring store [city]", "[competitor] alternative") stay funded. Don't move money out of the bottom of the funnel to fund a test.

Step 2: Fund a clean test with new money

Set aside a test budget that is new, not taken from search, so you can measure the channel without disturbing your baseline.

• How much: a common starting point is 5% to 10% of your monthly paid media, or enough for roughly 200 to 500 clicks over four weeks. With OpenAI's suggested $3 to $5 starting bid, that's about $1,000 to $1,500 for a small business.
• How long: at least four weeks, so you see a full buying cycle.
• What to measure: qualified leads, cost per qualified lead and pipeline in your CRM, not clicks or CTR.

Step 3: Find search spend that AI answers have already absorbed

AI Overviews answer many informational searches directly, and those searches send fewer clicks. Look for:

• Informational queries ("how to", "what is", "cost of") with high spend and weak conversion.
• Broad match terms that drift into research queries.
• Upper-funnel generic terms where your cost per qualified lead is well above your average.

These are your reallocation candidates. The audience behind them didn't disappear. They moved to AI answers and chatbots, which is exactly where the test is running.

Step 4: Reallocate only what the data supports

After the test, compare cost per qualified lead side by side:

• Beats your weakest search terms: Then…: Move budget from those terms into chatbot ads in steps of 10% to 20% a month
• Matches them: Then…: Keep the test running and improve landing pages before moving more money
• Underperforms: Then…: Pause, fix tracking, creative and landing pages, and retest in a quarter

Step 5: Keep organic AI visibility in the plan

Ads put you below the answer. Being in the answer is earned. Accurate business facts, strong reviews and pages that answer buyer questions drive AI search visibility, and they make every paid click convert better. Start by claiming your business in ChatGPT.

Where LLM ads fit in a full funnel

Think of the buyer journey in four stages:

1. Discover: social video, YouTube and creators. (Video and content)
2. Research: AI assistants, AI Overviews and comparison pages. This is where chatbot ads and organic AI visibility matter most.
3. Decide: branded and high-intent search, Google Maps, reviews. (Local SEO, paid search)
4. Convert and return: landing pages, follow-up and retention. (Conversion optimization, AI follow-up)

Chatbot ads are a research-stage channel. They work best when the next stages are strong: a landing page that answers the exact question the buyer asked, and fast follow-up when they reach out.

An example plan for a $10,000-a-month ad budget

This is an illustration of the framework, not a benchmark:

• Baseline: Search: $7,000; Social: $3,000; Chatbot ads (test): $0; Notes: Current mix
• Months 1–2: Search: $7,000; Social: $3,000; Chatbot ads (test): $1,000 (new money); Notes: Clean test, pixel and CRM tracking live
• Month 3: Search: $6,300; Social: $3,000; Chatbot ads (test): $1,700; Notes: $700 moved from weak informational search terms, if the test beat them
• Month 4+: Search: Rebalanced monthly; Social: ; Chatbot ads (test): ; Notes: Budget follows cost per qualified lead, not the channel's hype

Common mistakes

• Cutting brand or high-intent search to fund AI ads. You lose proven customers to test a hypothesis.
• Judging chatbot ads on CTR. Measure qualified leads and pipeline in your CRM.
• Sending traffic to the homepage. Build a page that answers the question the ad appeared under.
• Skipping consent-safe tracking. No pixel and no CRM source means no decision.
• Ignoring organic AI visibility. Paid placements cost more when your facts and reviews don't back them up.

How we run this for clients

Our paid media team runs Google, Meta, TikTok and ChatGPT ads on one data loop. Every lead is tracked from the first click to the CRM, so budget moves to whatever produces customers at the lowest cost, week by week. If you want a second opinion on your current mix, our free growth plan includes a review of where your search spend is leaking.

FAQ

Should I move my Google Ads budget to ChatGPT ads? Not all at once. Test ChatGPT ads with new money first, then move budget only from your weakest search terms, usually informational and broad queries, if the test produces cheaper qualified leads.

How much should a small business spend testing ChatGPT ads? Enough for 200 to 500 clicks over about four weeks. With OpenAI's suggested $3 to $5 starting click bids, that's roughly $1,000 to $1,500.

Are Google ads next to AI Overviews "AI ads"? Yes. EMARKETER counts them as AI search-adjacent ads, and they make up most US AI ad spending in 2026.

What metric should decide the budget? Cost per qualified lead or sale, tracked in your CRM. Clicks and click-through rate don't tell you whether the channel makes money.

Will chatbot ads replace search ads? Not soon. Forecasts expect search-adjacent ads to remain the largest share of AI ad spending through 2030, with chatbot ads growing from a small base.

Sources

• EMARKETER: The AI advertising race isn't playing out as expected
• EMARKETER: US AI Advertising Forecast 2026
• EMARKETER: US Search Advertising Forecast 2026
• Crealytics: AI ad spending will double by 2030
• PPC Land: EMARKETER US AI ad spend forecast
• SOCi: 2026 local visibility benchmarks and Local Discovery Index
• Everything-PR: ChatGPT Ads advertiser guide (minimums and bids)