OpenAI Tests Visual Ads Inside ChatGPT

OpenAI will begin testing a visual ad format within the image generation feature in ChatGPT in the United States later this month, with an initial group of advertisers. The company says that the ads will be labeled and separated from the image generated by the user.

The company expanded conversion data integrations with Hightouch, Tealium, and LiveRamp, added partners in attribution measurement and incrementality, and began trials for measuring brand suitability with DoubleVerify and Integral Ad Science.

OpenAI indicates that its ad revenue reached an annualized rate of $1 billion in less than 200 days. It explains that ads are displayed to users of the Free and Go plans only, excluding paid plans, in an attempt to separate the paid experience from the free one.

This expansion comes at a time when AI tools are turning into a new surface for advertisers, away from search engines and social platforms. However, limiting tests to the US market means that their direct impact on advertisers in the region will be determined later, while the announced revenue growth figure remains an indicator of the speed at which the company is turning into an ad channel.

What do these terms mean?

Annual Run Rate: Converting short-term revenue to its full-year equivalent to measure growth pace.

Attribution Measurement: Identifying the ad that led to a purchase or conversion among multiple touchpoints with the customer.

Incrementality: Additional sales that resulted from the ad alone and not because the customer would have purchased anyway.

Brand Suitability: Adjusting where the ad appears so it is not associated with content that harms the brand image.