ChatGPT Ads Are Coming – And They’re Nothing Like Google

The prospect of advertising within ChatGPT is on the horizon, though OpenAI’s CEO Sam Altman admits the exact format remains undefined. During a recent public discussion, Altman confirmed that ads will likely be tested “at some point,” but he emphasized they are not viewed as the company’s primary revenue stream. He also drew a sharp contrast with Google’s advertising approach, suggesting a fundamentally different philosophy could guide OpenAI’s model.

Altman critiqued the core incentive structure of Google’s search ads, stating, “Ads on a Google search are dependent on Google doing badly. If it was giving you the best answer, there’d be no reason ever to buy an ad above it.” He argued this creates a misalignment with the user’s goal of finding the best information. In contrast, he positioned ChatGPT as a service where the user is either paying directly or the system is inherently motivated to provide the most accurate response. The financial relationship, in his view, should be built on trust.

The central principle Altman outlined is that ChatGPT should only make money when it earns users’ trust. He illustrated this with a stark example: “If ChatGPT were accepting payment to put a worse hotel above a better hotel, that’s probably catastrophic for your relationship with ChatGPT.” This underscores a commitment to maintaining the integrity of the platform’s recommendations, where monetary gain does not corrupt the quality of the output.

This potential shift carries significant implications for marketers. Should Altman’s vision materialize, the entire consumer journey, from asking a question to receiving a recommendation and completing a purchase, could unfold within a single, seamless conversation. Brands will need to develop new strategies to ensure they remain visible and relevant in these AI-driven search experiences, where traditional paid placement may not exist.

So, how might ads on ChatGPT actually function? Altman described a potential model focused on affiliate-style commissions. The AI would first show its genuine best recommendation. If a user then makes a booking or purchase with a single click, OpenAI could take a small, standardized commission. He explained, “If ChatGPT shows you its guess – the best hotel, whatever that is – and then if you book it with one click, takes the same cut that it would take from any other hotel, and there’s nothing that influenced it … I think that’s probably OK.” He specifically mentioned travel as a likely initial vertical for this approach.

Crucially, Altman ruled out any form of pay-to-play answers. He believes that allowing money to influence rankings would lead to an immediate collapse in user trust. While he is open to experimenting with advertising formats he deems “very good,” he remains adamant that the detrimental kind, where payment corrupts results, is off the table.

Interestingly, the development of this advertising system is not currently a personal focus for Altman. He has delegated product strategy to other experts within the company, confident they will devise a suitable solution. For now, the concept of ChatGPT ads remains a future possibility, one that Altman is approaching with caution to ensure it aligns with the platform’s core value of providing trustworthy, user-centric assistance.

(Source: Search Engine Land)