Earlier this year, OpenAI announced the intention to start testing ads in ChatGPT, for logged in users in US on the free or Go versions. Whilst this in the early stages of development, a larger roll out of ads will probably come sooner rather than later – especially as Criteo have recently announced a partnership with ChatGPT.
The opportunity for advertisers is a potential game-changer
With both Google and Microsoft also active in this space, advertisers now have another channel to explore as part of their media mix – ‘Conversational Media’.
Understanding how people articulate needs, questions, and make decisions using natural language becomes the next competitive frontier.
Increasing numbers of consumers are turning to tools such as ChatGPT to do things—plan trips, compare products, troubleshoot issues, make decisions, or learn complex topics. Understanding the questions people ask gives advertisers access to high intent moments. This access presents a huge opportunity for advertisers to reach target audiences who are primed and ready to convert.
OpenAI are putting trust at the centre of their offering
There are three clear principles outlined in OpenAI’s ads strategy:
- Ads are visible, but not invasive
- Targeting is contextual, not behavioural
- User agency is built-in, with controls to disable personalisation and dismiss ads
These features are very important, given the expectation from users that the information they get from LLMs is neutral i.e. not influenced by any form of incentives. It is crucial for user experience that LLM’s organic responses remain independent.
OpenAI also state that user conversations are kept private from advertisers and they have no plans to sell user data. With context being at the core of the targeting capabilities, creative relevance will be important, and this is where Criteo will no doubt play a key role as the ads offering is developed.
What are the implications of ads in ChatGPT for advertisers?
Understanding more about how your customers are using LLMs is going to be important when trying to unlock opportunities with ads. One single conversation could cover all stages of the purchase funnel, due to the queries being richer in context and the dynamic nature of the conversations with ChatGPT. Queries will generate an answer, which prompts further queries, which leads to further answers…very different from traditional search where each query is singular.
Creative execution needs to be relevant and add value to the user’s ongoing conversation. Think about ads reading as a helpful suggestion. With ads in ChatGPT being nascent, there is likely to be rapid change and evolution as the ads proposition grows.
There is potential for ‘conversational media’ to become the leading channel within an advertiser’s digital marketing strategy. Criteo's US clients report users referred from LLM platforms convert at 1 and a half times the rate of users from other referral channels.
Part of our ethos at equimedia is being at the forefront of innovation so if you’d like to learn more about the impact of AI on advertising and the opportunities it presents, please get in touch.
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| Author | Amisha Rathod |
| Channel | Media |