"Ads on ChatGPT will be based on the context of what users are asking for at a given moment, similar to the contextual advertising on many platforms, instead of being tied to everything a user has ever asked. Advertisers will have control over their ads, from which ad creatives will be shown, to defining broad targeting settings such as general location or demographics."
"It's the next progression of contextual advertising. Yet, LLMs are so much more than a traditional search engine, meaning there will be a lot for advertisers to rethink. Brands will need to engage users in the flow of conversation, rather than trying to take their attention away from the information a user is focused on. With dynamic product suggestions embedded directly into interactions, brands will want to create ads which react to the intent behind a query. The aim will be natural placement within answers,"
OpenAI began testing ads on ChatGPT for US users, placing ads on the free and Go tiers. Ads will be contextual to the user's current query rather than tied to historical queries, and advertisers can select creatives and broad targeting like location and demographics. LLMs require advertisers to integrate promotions into the conversational flow, using dynamic product suggestions that react to user intent and aim for natural, relevant placements. Advertisers face challenges because they cannot fully control chatbot environments and the model's answers will influence ad selection. Consumers will encounter ads embedded within responses, changing expectations around interruption and relevance.
Read at Exchangewire
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