"At any point in a conversation, ChatGPT can target a user with an ad at the right moment based on the content of their current chat, said Yang Han, CTO of DSP StackAdapt. Other platforms might have an idea of what types of products to show a user (perhaps energy drinks and activewear for a runner), but it's a lot harder for them to know exactly when to reach that person."
"Crucially, ChatGPT doesn't just have user data; it has memory. Beyond knowing that someone is a runner, it may also know exactly when they last ran a race as well as related queries they've made in the past. ChatGPT could suggest not just a relevant product, but the version of that product that's best suited for an individual consumer, Han said."
OpenAI's ChatGPT ads are new and face advertiser reluctance because the channel lacks a pixel or attribution system. Initial advertisers were asked to commit under $1 million, but OpenAI later set a $60 CPM, comparable to NFL ad rates and over three times Meta's CPMs. Convincing buyers to test the channel and justify the higher price is a key challenge in a competitive ad landscape. Chatbots can deliver contextual relevance and retain conversational memory, enabling precise moment-based targeting and personalized product recommendations, which could differentiate the offering despite attribution and pricing hurdles.
Read at AdExchanger
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