I’ve noticed that OpenAI is introducing premium-priced ads on ChatGPT, but here’s something interesting: the data provided to advertisers is significantly limited compared to what we’re used to.
What’s happening. Reports indicate that OpenAI is offering ChatGPT ads at around $60 per 1,000 impressions. That’s about three times the rate of standard Meta advertisements! Yet, even with this higher cost, advertisers only receive basic metrics like total impressions or clicks, without insight into actions like purchases.
Why we care. ChatGPT is becoming a fresh, highly engaging ad space, but it’s not without its challenges. The hefty CPMs and limited insights mean that early advertising efforts will lean more toward enhancing brand presence and gathering learnings than achieving performance-driven efficiency.
For marketers who are open to trying new avenues, this presents a unique chance to gain insights into how ads function within AI-driven conversations before the format becomes more widespread or measurable.
The tradeoff. OpenAI is contemplating expanding its measurement capabilities in the future, yet it remains committed to user privacy. It has pledged not to sell user data or invade the confidentiality of conversations, which limits traditional targeting and attribution possibilities that platforms like Google and Meta offer.
Who will see ads. Initially, these ads will be available to those using ChatGPT’s free and lower-cost Go tiers, but won’t be shown to users under 18 or in conversations concerning sensitive topics like mental health or politics.
Between the lines. OpenAI is branding ChatGPT ads as a top-tier, trustworthy product, banking on the idea that context, focus, and brand safety can validate the higher pricing, despite the lack of detailed performance data.
Bottom line. Brands eager for prominent visibility in a cutting-edge AI-driven environment may find ChatGPT ads appealing, but those focused on performance metrics might hesitate due to the absence of detailed measurement.
Dig deeper. OpenAI Seeks Premium Prices in Early Ads Push (Subscription needed)
Inspired by this post on Search Engine Land.
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