OpenAI turns on cost-per-click ads inside ChatGPT

The platform that can figure out how to prove AI chatbots can drive an outcome will unlock a budget category that doesn’t exist yet. OpenAI just took big steps toward that threshold: turning on cost-per-click ads inside ChatGPT. And it is on the hunt for its first advertising marketing science leader.

CPC ads are the more immediately significant move of the two since it gives those marketers who are currently testing advertising there the option to pay when someone actually clicks on them, rather than for every thousand impressions served. They can do this by setting bids between $3 and $5 per click, according to screenshots of the ads manager, shared with and subsequently verified by Digiday.

“As OpenAI looks to increase spending, this is going to help advertisers directly compare their results on Open AI to other major advertising platforms and manage their spend,” said Nicole Greene, vp, analyst at Gartner. “In a world where everything is changing due to AI tech and consumer behaviors, this consistent measurement will help advertisers justify reallocation of spend to OpenAI.

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Why OpenAI is ‘running at lightning speed’ to build an ad business

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OpenAI’s ad playbook may leave some marketers with whiplash given its pacing. In the last month, the platform has struck deals with ad tech partners like Criteo and Smartly, hired former Meta exec Dave Dugan to oversee its ad business, launched a self-serve manager in testing, rolled out pixels to track ad conversion — and now, its ads are getting cheaper.

That’s a lot for a company that only launched an ads business two months ago. The breakneck clip at which OpenAI is moving begs the question: Is OpenAI moving too fast with their ads? 

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