OpenAI is recruiting to monetize ChatGPT via an American advertising platform. This expensive test targets big brands with contextual targeting. Initial returns show mixed results and limited data.
Last February, Sam Altman’s company deployed the first advertisements in ChatGPT only in the United States. While Sam Altman, CEO of OpenAIhad expressed his aversion to chatbots integrating advertisements in 2024 during a round table at Harvard Business School. This experimental phase represents a strategic turning point for the American firm. It now faces the challenge of balancing its advertising imperatives and the loyalty of its base of 800 million weekly users.
The companies that were selected for the testing phase were handpicked. The entry barrier was 200,000 euros. Only large companies and renowned advertisers had access to it. Among the brands involved are Audible, Mrs. Meyer’s, Adobe and the distribution giant Target via its Roundel management company. With a CPM set at $60, the platform displays prices three times higher than those of Meta and clearly outperforms the Google Display Network. This cost is more in line with the standards of Netflix or major sports broadcasts. After several weeks of testing, the cost rose to $25 in some cases. OpenAI also established strict control, requiring prior validation of all public communications from advertisers.
Results still uncertain.
If the selected companies and agencies did not want to respond to our requests on their methods and results, according to initial feedback, according to Greg Sterlingco-founder of Near Media, the approach appears to be largely contextual. “At this point, everything is still in the testing stage, so there are no firm conclusions. Ads that answer a user’s question or search, especially in product categories that require careful consideration, appear to have greater success based on individual feedback.” Examples include products requiring research and expert advice, such as furniture, electronics or fitness equipment. However, it is too early to draw conclusions, according to Greg Sterling. “Data is scarce. Currently, advertisements on ChatGPT only affect a relatively small number of users.
While OpenAI recently launched cost-per-click (CPC) ads on the conversational module, according to Reece Rogers from Wiredout of 500 questions to ChatGPT, via its mobile app, about one in five questions in a new conversation thread triggered an ad to appear at the bottom of the chatbot’s response. The ads included a button linking to a website. Evoking very broad topics, they were adapted to the user’s latest request. Note that the appearance of advertisements from competitors of a brand cited in a query has occurred several times. However, this format and frequency could change soon as part of this test.
For Greg Sterling, “The rollout is being done slowly and cautiously, probably to avoid confusing ChatGPT users. This is frustrating many advertisers, according to early reports. The analytics data they will or are receiving is also very sparse, or even lacking, as some have said. Click-through rates are also reportedly significantly lower than what people are used to with Google. There has been some positive feedback, but also a lot of frustration expressed.” According to him, the deployment of this version of ChatGPT Ads on a large scale is not for today. “Right now, it’s very much a work in progress. It still needs to improve significantly before it can become a mass advertising platform on the scale of Google or Meta.”
Recruitment of Ads specialists is underway at OpenAI
In the meantime, some current listings show color. “OpenAI job offer: Software engineer, advertising monetization, revenue platform.” Missions include: “design and develop the core monetization systems for ChatGPT Ads. Design and operate the essential services and pipelines that power end-to-end ad monetization, from event capture and validation to aggregation, pricing, measurement, and ultimately producing billable results.” Another announcement is titled “Customer Success Manager to support advertisers in onboarding, launching and growing their presence on the OpenAI advertising platform.” The missions, among others: “you will manage a portfolio of partners and act as a trusted advisor, helping them achieve their business objectives while ensuring an optimal and responsible experience on our platform.”
