OpenAI opens ChatGPT advertising to businesses

OpenAI has opened its self-service advertising platform to businesses in India, extending a model that places sponsored recommendations alongside conversations in ChatGPT.

Advertisers can now buy campaigns directly through ChatGPT Ads Manager, OpenAI said on 31 August. The expansion also covers Europe, the Middle East and North Africa.

The company said its advertising business reached an annualized revenue rate of $1 billion in fewer than 200 days. ChatGPT now has more than one billion weekly active users worldwide, although OpenAI did not provide India-specific advertising or audience figures.

ChatGPT ads differ from conventional search advertising because they can respond to the context of a conversation. A person planning a trip, comparing software or researching a product may describe requirements in greater detail than a short search query ordinarily reveals.

OpenAI says advertisements are labeled and displayed separately from ChatGPT’s answers. It also says advertisers cannot access users’ conversations, memories or personal details, and that advertising does not influence the answers ChatGPT produces.

The ads are shown to adults using ChatGPT’s Free and Go plans. Plus, Pro, Business, Enterprise and Education subscriptions remain free of advertising. OpenAI says it also excludes conversations involving sensitive subjects such as health, mental health and politics.

Its advertising platform supports cost-per-click and outcome-based bidding, product feeds, geographic and device targeting, custom audiences and conversion measurement. OpenAI said small and midsized businesses account for a material share of advertisers using the service.

For Indian marketers, the platform introduces a channel built around a customer’s stated needs rather than a list of search terms or demographic traits. That could be useful for products requiring comparison or explanation, including financial services, travel, education, software and consumer electronics.

It also gives brands less control over the surrounding conversation. An advertisement may appear while ChatGPT is helping a user compare products, identify drawbacks or question whether a purchase is necessary. A prominent placement will not guarantee a favorable recommendation.

Marketing teams will therefore need to measure more than impressions and clicks. They should examine whether ChatGPT traffic produces qualified inquiries, completed purchases and returning customers, analysts said, adding that they will also need to watch how placement beside an AI-generated answer affects trust in both the advertisement and the brand.