From Research to Revenue
ChatGPT ads are coming: what it means for AI and marketing.
We’ve been expecting it for a while. With news of OpenAI hiring for ad engineering staff, the clearest indications that ChatGPT will launch an ad revenue stream have come.
It’s hardly surprising with the mass adoption of the platform whilst losses increase. Hot on the heels of trailing Google AI overview paid presence recently launched in the US, we’ve been thinking about how these paid options could look. We asked our team for their thoughts. Here are their predictions…
“Just about every high trafficked online platform is ad supported, so this is no surprise to me. The exciting opportunity for advertisers is the potential for such highly defined keyword (or keyphrase) targeting. Whereas we have to a degree infer intent/intention behind a Google search, across multiple prompts in a thread there would likely be enough context to judge the true nature of their search, be it very general research or more pointed. If paid ads can serve as the chat develops and that context increases, I can picture some expensively but highly fruitful intent based targeting options.”
Conor Bant – Head of Media and Performance
“What’s exciting is not just the access to native ChatGPT traffic for advertisers, but also the potential of expanded targeting capabilities that leverages AI’s advanced reasoning that augments traditional cookies and 1st party data to deepen insight into user behaviour and intent beyond keyword matching. ChatGPT already has a wealth of first party data that can lead to a powerful influence on consumer behaviour, especially when combined with their video and image generating capabilities. The ad product has the potential to hit a sweet spot between contextual relevance, premium exclusive inventory and accurate targeting”
Jerry Li – Media Buying Specialist
“I expect ads integrated into ChatGPT will present hyper personalisation at true scale, this will be the cross over between paid social ads and search – with ad copy tailored to the individual not the brand. ChatGPT and other AI tools are fundamentally different to other platforms, they’re driven by audience queries, and responses are completely unique to user, intent, and context not by algorithmic ranking. It’ll be interesting to see how targeted these platforms will enable ads to be. How effective will these ads really be, as blindness to AI copy has already taken hold, and audiences utilising the platforms for personal and professional boundaries – will it switch audiences away from the platform if they’re bombarded by ads?”
Josh Boot – Head of Organic
“ChatGPT Ads were always going to happen, it’s the only way to keep a free version of the platform. This creates huge opportunities for businesses to connect with their target audiences in a whole new way. Ads in a conversational setting could look like sponsored answers, product carousels, affiliate links, or even ad supported credits – all of which create new, high-intent moments to connect with users. If they’re executed thoughtfully, they could actually feel more relevant and transparent that traditional ads, giving early adopters a real edge. However, people have begun to confide in ChatGPT for unbiased genuine advice, opinions and knowledge so there is potential for upset if there is suddenly constant ads within ChatGPT answers. The balance will be in making ads useful, clearly labelled, and non-intrusive. If OpenAI gets that right, this could be the start of a whole new era of advertising.”
Ellie Coffey – Paid Search and Social Executive
As our experts have shared, the consensus is clear: ChatGPT ads are inevitable and present advertisers with an unparalleled opportunity for hyper-personalised, intent-based targeting driven by deep conversational context. While challenges will remain, such as ensuring ads are non-intrusive, clearly labelled, and don’t erode user trust or cause “AI copy blindness”. the potential for a new, highly relevant, and transparent form of advertising is immense. The companies that figure out how to navigate this balance will be the ones that gain a significant early adopter advantage in this next era of digital marketing.