Ads on ChatGPT could be built around shopping intent
What's the story
OpenAI, the company behind the popular AI chatbot ChatGPT, is reportedly considering introducing advertisements as a new revenue stream. The move comes as part of a broader strategy to monetize the platform beyond subscriptions. OpenAI CEO Sam Altman has said he is not totally against ads and even prefers personalized ones like those on Instagram.
Advertising strategy
OpenAI's approach to advertising in ChatGPT
Fidji Simo, OpenAI's CEO of Applications, recently addressed the potential inclusion of ads in ChatGPT during an interview with WIRED. She said, "Advertising as a model works really well when you have a lot of commerce intent. We have a ton of it already, people coming and asking for shopping advice." Simo emphasized that any future advertising efforts would be respectful toward users' experiences and recommendations.
Expertise
Simo's background in advertising and data privacy
Simo's experience includes building and scaling advertising businesses at Meta, where she led the development of mobile ad products and video advertising. She said, "What I've learned from building ad platforms is that the thing people don't like about ads very often is not the ads themselves, it's the use of the data behind the ads." This suggests a consideration of data privacy issues in the context of ad integration.
Revenue potential
Personalized ads and potential revenue generation
According to The Information, OpenAI is considering showing ads based on ChatGPT's memory feature. This would allow for highly personalized advertising experiences for users. Meanwhile, other reports suggest that OpenAI is looking for someone to lead a new team focused on monetizing ChatGPT through ads. If successful, this could potentially add billions to the company's profits from advertising.