"The retailer is one of the first wave of brands to start testing ads across ChatGPT's free and Go tiers - a pilot which began on Feb. 9, having been delayed three days by OpenAI. It is promoting both its own business and select partners from its Roundel retail media network. The placements will align with specific keywords in user prompts, an attempt to mirror the intent-driven logic of search while adapting it to a conversational interface."
"In one theoretical example outlined by the retailer, a user asking ChatGPT for recommendations on convenient countertop cookie appliances could be shown an ad for an air fryer brand that advertises through Roundel. The idea is straightforward: match expressed intent in the moment with a relevant commercial message, without interrupting the flow of the conversation. Whether that alignment feels helpful or intrusive will ultimately shape how far - and how fast - this format scales."
Target is piloting ads across ChatGPT's free and Go tiers, promoting both its own business and select Roundel partners. The pilot began on Feb. 9 after a three-day delay by OpenAI. Placements align with specific keywords in user prompts to mirror intent-driven search logic within a conversational interface. Advertisers were reportedly told placements would cost $60 per 1,000 views. Ads will be clearly labeled, separated from core responses, and will not influence system answers. Target did not disclose campaign duration or target customer categories. Results will determine whether ChatGPT serves as a meaningful performance channel or remains an experimentation line item.
Read at Digiday
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