"People familiar with the talks say OpenAI has discussed letting its models surface sponsored content more prominently in responses. According to an internal source cited by The Information, OpenAI is exploring ways to build new advertising products that are distinct from traditional social formats and can draw on insights from chat histories. OpenAI is adamant that user trust will remain a priority."
"Buyers are still traumatized from when Twitter changed owners in 2022 and became X. Last year, TikTok faced mounting uncertainty about a potential ban, underwent major layoffs and saw key executives departures as the company scrambled to restructure ahead of its US divestiture. To be fair, TikTok's situation is different from what went down at Twitter. Musk's takeover was borderline hostile, whereas TikTok's ownership shift is more of a negotiated handoff."
""Losing that level of talent [and] understanding of what advertisers are looking for, that's hard to make up for," says Noah Mallin, founder of marketing consultancy Mallination. But TikTok has something that X (and even Twitter before it) never had: strong ad performance, billion-user scale and a legit ecommerce foothold. TikTok is "where people are," an agency exec tells Digiday. "Advertisers are going to want to follow those eyeballs.""
OpenAI is exploring ways to let models surface sponsored content more prominently and to build advertising products that leverage chat-history insights, while pledging to protect user trust by showing ads only when users demonstrate clear interest or purchase intent. Advertisers are cautious after Twitter's volatile ownership change, but TikTok retains advantages including strong ad performance, billion-user scale and an ecommerce foothold despite layoffs and executive departures during its US divestiture preparations. Observers warn that talent loss could hurt advertiser relations. California launched a state-run site allowing residents to request that advertisers delete all of their data under new privacy protections.
Read at AdExchanger
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