OpenAI is accelerating the expansion of its advertising business on the ChatGPT mobile app. An analysis says the push to secure a new revenue source beyond subscriptions is gaining momentum as major consumer brands join an advertising ecosystem that initially centred on tech companies.

On July 31 (local time), Business Insider reported that hourly ad impressions on the ChatGPT app roughly doubled in July compared with April, based on tallies by U.S. market research firm Sensor Tower. The number of advertisers also rose to more than 820 from about 300 over the same period.

Sensor Tower estimated that at least 160 advertisers entered the ChatGPT ad market in July alone. Early on, tech firms such as Speechify, Jotform and Natural Intelligence made up a large share, but major brands including Booking Holdings, Intuit, Home Depot and L.L.Bean have recently emerged as key advertisers.

The mix of ad categories is also changing quickly. Shopping remains the largest area of ad spending within ChatGPT, but ads in financial services, travel, tourism, hiring and education are expanding. In particular, the share of financial services ads rose to 12 percent in July from 2 percent in April, marking the biggest increase. Sensor Tower named BestMoney.com as one of the major advertisers in July.

Sensor Tower said ChatGPT is effectively diversifying its advertiser base by attracting companies from a wider range of industries. The analysis said the broader range of ad categories is having a positive effect on OpenAI's monetisation strategy and its expansion of ad products.

OpenAI currently shows ads to free users and those on its $8-a-month plan. With most ChatGPT users in those categories, the large user base is seen as a key asset for expanding the ad business.

Sensor Tower estimated that monthly users of the ChatGPT mobile app reached 1 billion in May. With that vast user base, the possibility is growing that OpenAI will build a new revenue model closer to the search advertising market.

Still, ad revenue is still at an early stage compared with Big Tech. OpenAI's annual recurring ad revenue totalled about $100 million as of May. That is small compared with Google and Meta, which posted advertising revenue of $81.6 billion and $59.3 billion, respectively, in their latest quarters.

OpenAI is also wary of harming the user experience as it expands advertising. Dave Dugan (데이브 듀건), OpenAI's head of advertising, said he placed ads "very conservatively" during the first few weeks after the introduction. He said he learned how to operate ads while prioritising user satisfaction, and added that 4 months after launch he has gained confidence that the company can run a higher volume of ads.

ChatGPT ads are currently displayed below the AI's answers to users' questions. OpenAI is operating restrictions on ad exposure, such as not placing ads on questions related to personal health or politics. A self-service ad product launched in May is seen as having limited functions compared with Google and Meta's ad platforms, but OpenAI is adding ad formats and tools as it seeks to attract advertisers.

The industry is assessing that ChatGPT advertising is moving beyond a simple experimental stage and toward a new ad platform that includes major brands. A key task ahead is whether increased ad exposure can become a stable source of revenue that complements OpenAI's subscription business without hurting the user experience.