tech
OpenAI is building a new kind of ad machine. Early data suggests Google should worry.
How ChatGPT ads turn conversations into buying intent, and why OpenAI may have a massive new revenue engine
TL;DR
- ChatGPT ads are based on conversational intent, not keywords, allowing for unique targeting opportunities.
- Ads can appear even when users do not explicitly search for products, based on the context of the conversation.
- The concept of 'intent drift' describes how user intent evolves during a chat, which ChatGPT ads can capitalize on.
- A significant portion of ads triggered on ChatGPT would not have activated traditional Google Shopping ads.
- ChatGPT currently displays a single ad per conversational turn, making the ad inventory valuable with high CPM and CPC estimates.
- Early engagement metrics, including click-through rates, are competitive, with high-quality click performance reported by advertisers.
- Users continue conversations after seeing ads, suggesting ads are not overly intrusive and are well-integrated into the user experience.