ChatGPT's ad growth outruns the proof that it works
ChatGPT handles about a fifth of Google's search queries, but its ad business is far smaller and reaches fewer than half of eligible users in key markets.
ChatGPT advertising activity is growing faster than the evidence proving its effectiveness, according to Digiday, as the app handles about a fifth of the queries Google handles.
Despite that volume of use, the value of its advertising business remains far smaller than that of the best-known search engine, raising questions about the platform ability to turn conversations into revenue.
The data indicated that ads reach fewer than half of eligible users even in its most established markets, with a share of 45.7% in the UK, 43.4% in the United States, 43.3% in Australia and 27.8% in Mexico.
That poses a dilemma for advertisers: growing interest in the platform against limited evidence of return, at a time when companies are competing for advertising slots inside artificial intelligence tools.
What do these terms mean?
Ad-eligible user: A user who meets the conditions for being shown an ad, such as country, device type and required consents; not every active user is eligible.
Query: The word, phrase or question a user enters into a search engine or artificial intelligence assistant to get an answer or result.
Weekly Newsletter
Read between the lines before everyone else. Decode the most important economic, tech, and decision-maker movements in the region.. in 5 minutes every Saturday.
