I am curently trying to make a chat application aimed at 1000-1500 users. What currently happens is once my webpage loads I make an ajax request every second to check if there is anything new in the database. I want to know if this is the standard practise or if there is a more efficient way to be notified by the server somehow when an insertion occurs.
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Use WebSockets. Or at the very least AJAX polling. Firing a request every second from 1500 clients will most likely kill your server.
Look at http://socket.io/ if you are open to introduce something new to your stack. But there are PHP websocket solutions out there if you are limited to PHP.