[DigitalToday reporter Chi-gyu Hwang] OpenAI, which is seeking to introduce an advertising model on ChatGPT, is quoting advertisers fairly high prices.

On Jan. 26 (local time), The Information reported that OpenAI is charging rates in the early phase of ChatGPT ads comparable to those for popular premium video programmes such as the NFL. The level is far higher than what Meta Platforms’ social media apps charge.

Earlier, OpenAI said it would offer ads on free and low-cost ChatGPT plans within a few weeks in early January.

Advertising is seen as a key element in OpenAI’s plan to generate $11 billion in revenue from free ChatGPT users by the end of 2027.

In the early phase, ads on ChatGPT are expected to appear below answers. An industry source cited by The Information said OpenAI charges about $60 for every 1,000 impressions. That is similar in scale to premium TV inventory such as live NFL games and targeted streaming ads. Meta typically seeks under $20 per 1,000 impressions. ChatGPT ads cost more than three times those on social media.

Given that ChatGPT’s user base and chats provide strong clues about what users are interested in, The Information reported that some advertisers are likely to be willing to pay OpenAI’s prices for early inventory ads.

For early inventory ads, OpenAI was reported to have contacted some advertisers directly without going through advertising agencies. The Information also reported that some large and well-known companies that are existing OpenAI business customers have signed contracts with OpenAI.

OpenAI provides early advertisers with impressions data showing how many people viewed the ads and data showing how many clicked them. Unlike Meta or Google, OpenAI does not provide detailed data on responses to queries served with the ad or whether the ad led to user actions such as purchases or website visits.

OpenAI will provide such data in the future, but it may take time to integrate more sophisticated advertising tools. The Information reported that this shows OpenAI still faces many tasks before it can build an advertising business that can compete with Meta and Google.

One of the decisive reasons Google and Meta were able to catch up with TV networks in the advertising market was that they provided detailed metrics showing ad effectiveness. OpenAI has yet to advance on this front, it said.