OpenAI has turned on cost-per-action ads inside its ads manager for a limited set of advertisers. The ads charge based on specific user outcomes in ChatGPT, such as clicking to a website, signing up, or making a purchase. Previously, advertisers paid for impressions or clicks regardless of downstream results. The change follows earlier signals that outcome-based bidding and conversion tracking were planned. CPA ads require conversion tracking infrastructure, which OpenAI enabled through the introduction of its pixel. The move expands OpenAI’s ads offering and brings it closer to the performance-oriented models used by Meta and Google, while also indicating a shift toward more direct competition for advertisers.
"OpenAI has switched on cost-per-action ads inside its ads manager, Digiday has learned. The feature, which is currently available to select advertisers only, lets them pay for ads in ChatGPT only when a user takes a specific action, whether that's clicking through to a site, signing up or making a purchase. Until now, advertisers have had to pay for every thousand impressions or click regardless of what happens next."
"The move was teased three weeks ago by OpenAI's head of monetization Asad Awan, who said during a press briefing that bidding on outcomes and conversions was "in the plan", and "should be done soon". That confirmed Digiday's reporting, which cited labelling in the OpenAI ad manager that suggested the feature was in development. Clearly, it was further along than that."
"CPA ads require conversion tracking infrastructure to function - something OpenAI recently put in place with the introduction of its pixel. Without it, the platform had no reliable way to connect an ad being seen to a downstream action, let alone against it. "Launching CPA advertising is a logical next step for OpenAI's ads business," said Claire Holubowskyj, senior research analyst at Enders Analysis."
""It expands its offering while diversifying its pool of advertisers, and aligns its product more closely with that of Meta and Google, whom it must compete effectively against to reach its own targets." For now, OpenAI has been keen to position itself as a home for experimental ad dollars rather than hardcore performance spend - a way to let the business develop without inviting direct comparisons to more established rivals. But that's a temporary posture, not a permanent one."
Read at Digiday
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