OpenAI starts selling ChatGPT ads, charges by views instead of clicks
Key Points
- OpenAI has started offering ad placements in ChatGPT to dozens of advertisers, with the first ads expected in early February and companies asked to spend under one million dollars each for a multi-week test.
- Unlike Google and Amazon, OpenAI is charging per impression rather than per click—a model that may reflect lower click-through rates in AI chatbots.
- The ad revenue could support OpenAI's push to raise up to 100 billion dollars, with ads initially shown to US users of the free version and the new 8-dollar tier.
OpenAI has started offering ad placements in ChatGPT to dozens of advertisers. Unlike Google or Amazon, the company is initially charging based on views rather than clicks.
According to a report from The Information, the first ads should appear in early February. OpenAI is asking advertisers to commit to spending less than one million dollars each for a multi-week test phase. The company doesn't yet have technology that lets advertisers book ads on their own, though it's currently in development.
The pricing model breaks from industry norms. While Google and Amazon typically charge per click, OpenAI is following the approach of social media platforms like Meta, which charge per impression. Whether this changes after testing begins remains unclear.
The decision to go with CPM (cost per mille) pricing could signal that AI chatbot users click on external links less often than traditional search engine users. Perplexity uses the same model. For advertisers, CPC (cost per click) is usually more attractive since it gives them more certainty about what they're getting for their money and makes it easier to measure ad performance.
Ad revenue could help OpenAI's massive fundraising push
The controlled rollout is strategic. OpenAI wants to grow revenue from ads and shopping without alienating users who might find chatbot ads intrusive. At the same time, a working ad business could strengthen the company's position with investors. OpenAI is currently trying to raise up to 100 billion dollars - an unprecedented amount for a private company.
Ad agencies and advertisers are reportedly interested in ChatGPT placements. With around 900 million weekly active users and the personalized nature of chat conversations, ads there could prove particularly effective.
The ads will initially appear to US users of the free ChatGPT version and subscribers to the new 8-dollar tier. Fidji Simo, OpenAI's CEO of Applications and former Instacart chief, is leading the ad business.
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