"Here's what we know so far: Ads appear as sponsored placements at the bottom of answers on free and Go tiers of ChatGPT. The tech behemoth is mainly approaching "the biggest of the big" brands as opposed to agencies. OpenAI is asking some marketers to commit a share of their total search budgets - a $200,000 minimum commitment in some cases. CPMs are said to be $60, on par with streaming and premium TV inventory."
"Seemingly, OpenAI has learned from their competitor's missteps - namely Perplexity, which put a pin it its ad business last fall. "They're clearly trying to see themselves as very separate to any of the other platforms out there," said Krystal Scanlon, Digiday senior platforms reporter, who joined the Digiday Podcast to discuss OpenAI's ad plans. "They're not necessarily saying that other platforms have failed, but they've obviously come with different learnings as to what has worked and what hasn't.""
OpenAI began testing ads in ChatGPT in the U.S., placing sponsored placements at the bottom of answers on free and Go tiers. The company is targeting large, well-known brands rather than agencies. Some advertisers are being asked to commit a portion of their total search budgets, with minimum commitments reported at $200,000. Reported CPMs are about $60, comparable to streaming and premium TV inventory. Brands including Williams Sonoma and Bed Bath & Beyond are participating in experiments through major agency holding companies. Advertisers remain uncertain about measurement beyond views and clicks and about the company's small, nascent ads organization.
Read at Digiday
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