AI is rapidly changing how people discover information online, and higher education is no exception.
Increasingly, prospective students are turning to platforms like ChatGPT to research universities, compare courses, explore career outcomes and seek guidance on what and where to study, often before they ever visit an institution’s website.
As one of the first agencies to gain access to ChatGPT Ads on 4 June, we’ve been testing the platform to understand how it performs and what it could mean for higher education marketers.
While it’s still early days, some clear patterns are already emerging. From lower-than-expected media costs to strong engagement rates, here are five things universities should know about advertising in ChatGPT.
1. Media costs are coming in lower than expected
When ChatGPT Ads launched, early guidance suggested CPMs would sit around the $60 (£45) mark. In reality, we’re seeing average CPMs of £30.46.
While pricing will inevitably evolve as demand increases, the current cost of reaching audiences is significantly lower than many expected.
For higher education institutions facing growing pressure on marketing budgets, this creates an opportunity to test a new channel without needing to make significant shifts in spend. It lowers the barrier to experimentation and provides a relatively accessible way to learn how students engage with AI-powered environments.
2. Engagement is outperforming early benchmarks
Initial CTR benchmarks were expected to sit between 0.8% and 0.9%.
Our early campaigns are currently generating an average CTR of 1.74%.
While benchmarks will change as adoption grows, the early signs suggest users are highly engaged with the platform.
This is perhaps unsurprising. Unlike many traditional advertising environments, ChatGPT users are actively seeking information, recommendations and answers. For universities, that creates an opportunity to appear in moments of genuine curiosity and consideration, rather than interrupting passive browsing behaviour.
3. Student discovery is already changing
Across campaigns, CPCs are averaging between £1.65 and £2.01.
But the more significant shift isn’t cost efficiency. It’s behaviour.
Prospective students aren’t necessarily asking AI platforms, “Which university should I apply to?” They’re asking broader questions:
- Which degrees lead to careers in sustainability?
- What’s it like to study engineering in the UK?
- How can I become a psychologist?
- Which universities have strong industry links?
Students are increasingly discovering institutions through conversations rather than traditional search journeys.
For universities, this means brand visibility can no longer be limited to search engines, social platforms and course aggregators. Institutions must consider how they show up when students begin exploring their options through AI.
4. The opportunity extends beyond conversion
Much of higher education marketing has traditionally focused on driving applications.
AI platforms create an opportunity much further up the funnel.
Appearing within environments where students are researching careers, subjects, destinations and future pathways allows universities to influence consideration long before an application is started.
This is particularly valuable in a sector where many institutions compete within a crowded and increasingly similar-looking marketplace. Building familiarity earlier in the decision-making process can help strengthen conversion later.
5. Advertising is only one part of the AI opportunity
Daily budgets can start from as little as $50 per day, making experimentation accessible for most institutions.
But the bigger opportunity isn’t simply buying visibility.
Universities need to understand how their institution appears when students ask AI platforms questions about courses, student experience, employability, research strengths or campus life.
The institutions that succeed in an AI-first discovery landscape won’t just be those running ads. They’ll be the ones ensuring their brand, content and digital presence are structured in a way that AI platforms can understand, reference and recommend.
The Takeaway
The most important takeaway isn’t the CPM, CPC or CTR.
It’s that student discovery is evolving.
Historically, universities have focused on being visible in search engines, social feeds, rankings tables and course comparison sites. Increasingly, prospective students are also turning to AI platforms to explore options, compare institutions and seek guidance on what comes next.
ChatGPT Ads represent one way to gain visibility in these conversations, but they’re only part of the picture.
The bigger opportunity lies in understanding how your institution appears when prospective students start asking AI the questions they once asked search engines.
Because in an AI-first world, discoverability won’t just be about where you rank. It will be about whether you’re part of the conversation in the first place.
