When Conversation Becomes Inventory: How OpenAI Could Reshape Digital Advertising | AdExchanger

"For decades, digital advertising has relied on proxies for intent: demographics, behaviors, cohorts and fragmented signals inferred from clicks and cookies. As of this week, that model is being tested. OpenAI has begun experimenting with ads in ChatGPT, matching sponsored messages to the topics and prompts within a user's conversation. In a prompt-driven environment like ChatGPT, intent is no longer inferred; it is expressed."

"As ad products align with prompts rather than personas, targeting shifts from who someone is to what they are trying to accomplish in real time. Advertising moves from predicting behavior to responding to meaning. This disruption will affect both the buy side and sell side. For brands, this opens a new lever beyond impressions. For publishers, this is a business problem, as their first-party data and on-site inventory could become less valuable for targeting."

"From ads to outcomes The real disruption won't be in where ads appear but how they are constructed. Instead of spotlighting a single product, conversational platforms can orchestrate decisions and assemble solutions to prompts dynamically. Imagine a user asking about flu symptoms. Rather than serving a single banner ad, the platform could surface a curated "flu kit": cough syrup, nasal decongestants, pain relievers, tissues and thermometers, sourced from a retailer like CVS or Walgreens."

Digital advertising historically relied on proxies for intent such as demographics, behaviors, cohorts and fragmented signals inferred from clicks and cookies. OpenAI is experimenting with ads in ChatGPT that match sponsored messages to conversation topics and prompts. In prompt-driven environments, intent becomes directly expressed across sequences of interactions, revealing context like moving homes, budgeting or prioritizing sustainability. Ad products aligned to prompts shift targeting from who users are to what users are trying to accomplish in real time. Brands gain a new lever beyond impressions, while publishers face reduced value of first-party data and on-site inventory for targeting. Conversational platforms can assemble outcome-focused solutions, raising questions about attribution and control over the customer journey.

Read at AdExchanger