ChatGPT, a chatbot developed by OpenAI. [Photo: Shutterstock]

OpenAI is stepping up its advertising business for ChatGPT. Some advertisers that joined early tests are pointing to a lack of measurement tools and low impression frequency as problems.

The Information reported on Friday that OpenAI plans to sell ads to more advertisers in April. It is also pursuing ways to simplify ad execution procedures. It is considering partnering with ad-tech companies or building its own ad management system.

The Information reported that advertisers that ran early campaigns are saying ChatGPT ads are technically behind and that they did not receive enough data showing ad effectiveness.

The Information reported that 2 agency executives who worked with early ChatGPT advertisers said they have not yet proved that the ads delivered measurable results for clients.

OpenAI began ad tests in early February. It showed ads to only a small number of advertisers, targeting U.S. users on ChatGPT's free and lowest-priced plans. The price was $60 per 1,000 impressions, a level comparable to live broadcasts of the National Football League (NFL). Advertisers had to commit to spending at least $200,000 before launch.

The Information reported that because there was no automated way to buy ads, advertisers had to call OpenAI staff or exchange spreadsheets and emails. It was also difficult to verify ad effectiveness. The information OpenAI provided was limited to impressions and clicks. That contrasts with existing digital advertising companies such as Meta and Google, which clearly show audience types and the impact of ads on business.

Impression frequency was also low. Advertiser budgets were deducted each time an ad was shown, but one agency executive said clients had spent only 15 to 20 percent of their committed budgets even after more than half the pilot period had passed.

OpenAI is reported to have recently told agencies it is increasing the number of users who see ads. It also plans to show ads within weeks to all U.S. users on ChatGPT's free and low-priced plans. That would sharply expand the audience eligible to receive ads.

OpenAI is also strengthening cooperation with external ad-tech companies. It recently announced an integration with Criteo, an ad-tech company specialising in retail advertising.

The Information reported it is unclear how much Criteo can bolster targeting capabilities in a short period. One agency executive said OpenAI will share only limited targeting data with Criteo. OpenAI is also said to have no current plans to introduce programmatic advertising, which uses real-time ad auctions.

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