The Elevator Pitch for This Blog Post: OpenAI is preparing to bring ads for certain tiers of ChatGPT users. This blog covers that as well as the broader implications for business owners of advertising in A.I. models.
The Five Most-Key Takeaways from This Blog Post
- Doing S.E.O. and A.I.O. (A.I. optimization) will still be necessary to get your business mentioned in ChatGPT’s actual responses to users.
- OpenAI published a post about its approach to advertising in ChatGPT. One major detail is that the ads will be separate from ChatGPT’s responses, rather than integrated directly into the response.
- As of this writing, OpenAI has been quiet on some details of advertising. For instance, how much will it cost to advertise in ChatGPT? And what approvals process would be in place to be able to advertise?
- Other major tech companies have not made a similar announcement, although that does not mean that ads may not one day be featured in models like Gemini.
- Bringing ads into A.I. models could potentially make for overall more-effective advertising because of the personal interactive nature of using A.I. in contrast to regular search, or content-viewing online.
The Significance for Business Owners
If you are paying for an advertisement to show up in ChatGPT, do not expect ChatGPT to automatically give your business a ringing endorsement—that still must be earned the old-fashioned way, through earning good reviews.
But the major benefit here is that you can also better guarantee that ChatGPT users are aware of your business. A.I.O. betters the odds of A.I. showing up in the conversation itself.
Combining that with ads in ChatGPT should be your business’s strategy for leading ChatGPT users to your business.
Advertising Restrictions in ChatGPT
Users will have the ability to dismiss ads, so be aware that just because you have paid for an ad in ChatGPT, that does not mean a viewer will be forced to see it.
Likewise, users can opt out of personalizing ads, which could limit reach if your advertising campaign is heavily dependent on personalization.
Another restriction has to do with the nature of the conversation. OpenAI specified that political topics, as well as health (including mental health), will not surface ads.
So, if you are looking to advertise during discussions of those topics, you will have to focus instead on A.I.O. to help get your business mentioned during such conversations, if applicable.
Also, OpenAI has pledged to not share user conversations with advertisers nor sell user data to advertisers.
Also, ads will not show up for users who claim to be under 18 or are classified as under 18 by OpenAI’s age-prediction algorithm.
How Does Ads in A.I. Change Digital Advertising?
One of the benefits of advertising in a conversational interface is that the ad could possibly become a topic of the conversation.
Though OpenAI’s approach of separating the ad from the ChatGPT response keeps some form of trust between the user and the A.I., the advertising nonetheless can influence the user.
OpenAI says as much itself: “For example, soon you might see an ad and be able to directly ask the questions you need to make a purchase decision.”
Turning A.I. Models into Digital Marketplaces
The fluidity of an A.I. model is one of its major strengths.
One moment, it can be a research assistant. The next, it could be a photo-generator. Then the next, it can be a brainstorming partner. Then the next, it can be a critic of your own work. Then with another prompt, the A.I. can become your personal software engineer.
Through prompting, users can shape A.I. models in real time to fit specific roles.
This fluidity is increasingly going beyond just the content of the conversation and into the format of the A.I. interface itself.
ChatGPT Instant Checkout—and Copilot Checkout, released after ChatGPT’s version—is one example of this.
Here, product carousels displaying products will show up when a user wants to do online shopping within the A.I. model. The user can even purchase the product within the A.I. model.
This represents where digital advertising is heading within A.I. models: making it easier for users to learn about a product and even purchase a product right within the model.
Ads in ChatGPT: A Long-ish Time Coming
Those who have been following OpenAI will likely not be surprised at the news that ads will soon be rolling out to ChatGPT’s free tier and GO subscription.
For months now, CEO Sam Altman has been publicly suggesting that ChatGPT could get ads, albeit describing this as a last resort at one point.
What may be surprising is the timing. At least one big name in A.I., namely Google DeepMind CEO Demis Hassabis, was taken aback. Is OpenAI already resorting to ads to stay afloat?
When Are Ads Coming to Other A.I. Models?
It seems like other major A.I. companies are sitting back for now and letting ChatGPT take any backlash that may come from putting ads in its A.I. product.
Seeing whether ads have any significant impact on retaining users will certainly be valuable to know.
Once people get used to the norm of ads in ChatGPT, then you will likely see a wider rollout among other A.I. companies.
Some companies may never go for it. Anthropic, which has been steadily rising over the past months and is a growing favorite among businesses, may not ever include ads as that may run counter to its branding as a safety-first A.I. company.
Google, which is certainly no stranger to aggressive online advertising, nonetheless may hold off for a while to see whether an ad-free Gemini may be enough to attract and retain users from other A.I. models with ads.
The Last (But Not Least) Key Takeaway from This Blog Post
Advertising in A.I. involves different dynamics than traditional digital advertising, which is why business owners should be aware of how they shape their ads for A.I. models.
Other Great GO AI Blog Posts
The GO AI blog offers a combination of information about, analysis of, and editorializing on A.I. technologies of interest to business owners, as well as a focus on the impact A.I. will have on commerce as a whole.
On a usual week, there are multiple GO AI blog posts going out. Here are some notable articles to get an overview of A.I. in business:
- For Businesses and Other Organizations, What Makes a Successful Chatbot?
- IBM Watson vs. ChatGPT vs. Gemini: How Will Each Affect Search Engines?
- Using A.I. to Find Resources for Business Owners
- How Would Restricting Open-Source A.I. Affect Business Owners?
In addition to our GO AI blog, we also have a blog that offers important updates in the world of search engine optimization (SEO), with blog posts like “Google Ends Its Plan to End Third-Party Cookies”.
GO Deeper on Substack!
If you want regular updates on A.I. in business and where this technology is headed, then check out our Substack to learn about emerging and dominant themes in the A.I. industry that affect all kinds of businesses.
