Author: Nexxen

Karim Rayes, Chief Product Officer, Nexxen

Last month’s NewFronts made one thing unmistakable: CTV has moved decisively into its performance era. The industry conversation is no longer centered on reach alone, but on results — or, more specifically, on which formats can most effectively turn attention into action.

It’s among the clearest reasons why native CTV is emerging as a powerful strategic complement to in-stream advertising. While in-stream remains highly effective for storytelling and scale within premium content environments, native formats can engage audiences earlier — at the exact moment of decision, when viewers are actively choosing what to watch and are inherently more open to influence. That distinction may sound subtle, but it fundamentally expands how advertising can work on the biggest screen in the home.

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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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