Amazon Ads brings advertisers to ChatGPT, extending its supply-chasing streak

Last September, Netflix. This September, ChatGPT. Amazon has cut a deal to let its advertisers buy ads from the popular AI-powered chatbot, adding to a long list of premium supply its spent more than a year locking down. 

From today (September 10), advertisers using Amazon Ads — the retail giant’s advertising platform, which includes its buying tool, the Amazon DSP — can buy ads inside the ChatGPT app. It’s a pilot for now, limited to select U.S. advertisers, with Delta Vacations among the first named. Given Amazon’s track record, it probably won’t stay that limited for long. Over the past 18 months or so the company has maneuvered its broader ads business  into some of the most coveted ad inventory going, from Netflix and Roku, to Spotify, SiriusXFM, Disney, Hulu and ESPN. 

“Conversational ads represent the fastest growing engagement opportunity for brands to reach new and existing audiences,” said Chris Conetta, director of omnichannel supply at Amazon DSP. “The AI-driven ad experience is not just a vision of what’s to come, but an opportunity for advertisers to meet relevant users where they spend time today. With access to ChatGPT Ads, advertisers can now extend their campaigns further into where their customers are actively spending time in conversational chat platforms.”

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Ad spend forecasts revised upward as more ad dollars are handled by AI tools

U.S. advertising spending is set to rise faster than expected this year, but so is the proportion of ad dollars spent through AI or automated campaign types like Meta’s Advantage+ or Google’s Performance Max.

The Interactive Advertising Bureau (IAB) estimates that U.S. ad spend will grow 12.3% this year, up from its previous estimate of 9.5%.

David Cohen, CEO of the IAB, said the upward revision was the result of strong spending around the Winter Olympics and soccer’s World Cup. “The first half was strong, major live events delivered, and advertisers have increasingly powerful tools in their arsenal to find and engage customers,” he said. 

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