OpenAI testing to launch impression-based ads in ChatGPT

Marking a faster-than-expected step into advertising, OpenAI is offering advertisers early access to a new impression-based placement inside conversational AI.

As per the reports, OpenAI is testing ads with select advertisers and plans to charge on a pay-per-impression basis, rather than pay-per-click model. The test is done with limited advertisers committing under $1 million each with no self-service buying tools available yet.

Linked to Conversational AI, ads inside ChatGPT can be an entirely new ad surface. Though OpenAI initially focused on subscriptions and API fees that was simple to manage, avoiding advertiser measurement. While this pay-per-impression model limits the traditional performance measurement, but it could evolve conversational ads, as it offers early access to a brand-safe, intent-rich placement.

The brands pay for its ads to be displayed rather than clicked. The Ads will appear at the bottom of ChatGPT responses, separate from organic answers. It will surface as subtle, clear, visibly labeled sponsored message, as per initial reviews. It won’t disturb the course of conversation or overpower natural response that traditional search advertising entails. While testing commercial viability, it is a cautious rollout to prioritize trust.

What sets ChatGPT ads apart?

Google ads are served on search, Meta ads interrupt your scrolling, while ChatGPT ads contribute along with different context. It is expected that it would be materialized when required and carry proper labeling and probably be in a certain place within AI response.

With the PPM model, OpenAI earns revenue even if users don’t interact with ads, leaving advertisers with limited insight into performance. OpenAI has hinted that user follow-up questions about sponsored products could be a future engagement signal and potentially another monetization layer.

OpenAI announced plans to introduce ads along with the launch of ChatGPT Go, its $8 per month ad-supported tier. At least for now the ads will appear for its free users.

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