"CPC ads are the more immediately significant move of the two since it gives those marketers who are currently testing advertising there the option to pay when someone actually clicks on them, rather than for every thousand impressions served."
"As OpenAI looks to increase spending, this is going to help advertisers directly compare their results on Open AI to other major advertising platforms and manage their spend."
"OpenAI's experimentation with CPC is driven largely by its need to maintain demand growth and build trust with advertisers, though declining CPMs and an expanding pilot are also factors."
OpenAI has introduced cost-per-click (CPC) ads in ChatGPT, allowing advertisers to pay only when users click on their ads. This move is significant as it enables direct comparison of advertising results on OpenAI with other platforms. The shift from a cost-per-thousand impressions (CPM) model to CPC is essential for attracting performance advertisers who dominate online ad spending. OpenAI's decision is influenced by the need to sustain demand growth and build trust with advertisers amid changing market dynamics.
Read at Digiday
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