"So, what exactly will OpenAI need to do to turn ChatGPT ads into a multibillion-dollar business? (For context, EMARKETER forecasts that TikTok will register around $43 billion in net digital ad revenue this year, Microsoft $19 billion, and Apple $13 billion.) Business Insider spoke with about a half-dozen advertising experts, including adtech CEOs, agency buyers, analysts, and academics. They said OpenAI needs a plan to ramp up beyond simple placements and to offer a data-driven platform that advertisers can trust to deliver outcomes."
"In an interview on CNBC this week, OpenAI CFO Sarah Friar gave a couple of examples: A user looking for a place to stay in Dallas next weekend might see an ad from Expedia, Booking.com, or Airbnb. An expectant mother living in San Francisco researching the best strollers that won't roll down a hill might get an ad from a baby specialty retailer."
OpenAI currently runs ad tests for select brands in the US, showing placements at the bottom of ChatGPT answers on the free and $8-a-month Go tier. Example placements include travel ads for Dallas lodging and baby-retailer ads for stroller research. Projections estimate several billion dollars in ad revenue this year and up to $25 billion by 2030 if execution scales. A successful strategy requires moving beyond basic placements to build a reliable, data-driven advertising platform that leverages users' natural-language query data to deliver highly relevant, performance-oriented outcomes advertisers can trust.
Read at Business Insider
Unable to calculate read time
Collection
[
|
...
]