OpenAI Considers Monetizing ChatGPT With Ads
▼ Summary
– OpenAI is reportedly setting a high advertising price on ChatGPT at around $60 per 1,000 views, which is triple the typical cost on Meta’s platforms.
– Advertisers on ChatGPT will initially receive only high-level performance data, such as total views or clicks, lacking the detailed user action insights provided by Google and Meta.
– OpenAI has committed to user privacy, promising it will never sell user data to advertisers and will keep ChatGPT conversations private.
– The first ads will appear in the coming weeks for users on the free and lower-tier ChatGPT plans, but not for users under 18 years old.
– Ads will also be excluded from chats covering sensitive topics, such as those related to mental health or politics.
Reports indicate that OpenAI is exploring a significant new revenue stream by introducing advertisements to its popular ChatGPT platform. The company is reportedly setting a premium price for this advertising space, asking around $60 per 1,000 ad impressions. This figure is notably higher than industry standards, roughly triple the typical cost for ads on platforms operated by Meta. This move signals a strategic shift as the company seeks to monetize its vast user base beyond subscription fees.
However, this premium cost comes with a caveat for marketers. Initially, advertisers will not receive the granular performance data commonly provided by giants like Google and Meta. Information on whether an ad view led to a direct user action, such as a website visit or product purchase, will not be available. Instead, early partners will be given more general, high-level metrics like total ad views and overall click-through rates. This limited data offering could present a challenge for brands accustomed to detailed analytics for campaign optimization.
OpenAI has suggested that more detailed advertising tools and insights could be developed in the future. This potential expansion of advertiser features will need to be balanced against the firm’s public commitment to user privacy. When announcing the ad tests, OpenAI assured users that it will never sell personal data to advertisers and will continue to keep individual chat conversations private and secure.
The initial rollout of ads is expected to begin in the coming weeks. They will appear for users on the free and lower-cost subscription tiers of ChatGPT. The company plans to implement safeguards, excluding advertisements from chats with users under the age of 18 and from conversations it deems to cover sensitive subjects, including those related to mental health support or political discourse. This careful positioning reflects an attempt to integrate advertising without fundamentally altering the user experience for core, personal interactions.
(Source: The Verge)
