Category: In the News

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How long can FOMO support OpenAI’s ad business? That’s the question likely hanging over the head of OpenAI’s global head of ads, David Dugan, right now.

It’s been a few months since OpenAI officially began testing ads inside ChatGPT, and things are progressing quickly. Marketers shelled out minimum ad commitments — up to $250,000 in some cases — seemingly based on the fear of missing out on the AI visibility boom. Now, those same marketers are reporting under-delivery issues.

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A quick scroll through social media video feeds would likely surface a slew of new programming types — a branded sitcom or game show, creator storytelling and ad-supported microdramas.

Social media platforms used to be digital town squares, opening up interaction between brands and shoppers. Now, platforms function more as short-form entertainment hubs.

The quiet shift is forcing brand marketers to rethink the role social plays in their marketing strategies, how creative gets made and success metrics. In some ways, brands are having to act like media companies, adapting by producing platform-native entertainment while still staying accountable to sales. 

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