Ads are coming to ChatGPT: Is that a good reason to be upset?

OpenAI is expanding ChatGPT's advertising system and launching image ads that will appear while users generate visuals for 1.2 billion users. The company commits that ads will not affect the independence of responses and is forging partnerships to measure conversions, aiming to narrow the gap with Google and Meta.

OpenAI announces the expansion of ChatGPT's advertising system with the launch of a new visual image ad format, which will be displayed to users while creating images in the chatbot. The ads will include branded product images, a 'learn more' button, and targeted purchase suggestions. The pilot will begin in the United States and will join the existing advertising system in free tiers and the discounted Go tier. The company emphasizes that the format will be separated from the image generated for the user and marked as a sponsored ad, and that ads will not affect the content of responses. OpenAI is launching a measurement and tracking toolkit including a conversion interface and pixels for tracking purchases, and has signed partnerships with AppsFlyer, Triple Whale, Adjust, and Branch. Initial data shows that WeightWatchers recorded a customer acquisition cost 15.3% lower compared to Google search ads. The company is also implementing a negative keyword mechanism for advertisers and conducting brand suitability pilot tests with DoubleVerify and IAS. The expansion stems from financial pressure to fund server and computing costs ahead of the planned IPO. The chatbot's annual advertising revenue stands at about $100 million, compared to $294 billion for Google and $196 billion for Meta.