OpenAI is fueling progress in what it expects to become a $100 billion advertising company.
The artificial intelligence (AI) startup will make its debut at the Cannes Lions International Festival of Creativity this week. As an advertising exchange I mentioned Tuesday (June 23), the company is using this event to showcase Dave Dugganhead of global advertising solutions at OpenAI, described it as “a completely new advertising product (and) a completely new experience.”
“Why would someone open a ChatGPT app?” Dogan asked reporters. “They want to do research, they want to solve a problem, they want to get information about a particular topic. They don’t come to ChatGPT to scroll.”
The report referred to Dogan Professional life As Executive Director at deadwhich took 17 years to exceed $100 billion in ad revenue, while OpenAI has reportedly told investors that it will reach that goal within the next four years.
However, the company stressed that its advertising business is still in its infancy, having only just launched 19 weeks ago, Ad Exchanger added.
“It’s like a baby; for a while, you’re talking about your baby’s age in weeks,” Duggan said.
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However, the report noted that things are progressing rapidly. Since February, the company Made its own test ads In the US, it debuted Ads Manager in beta and added international markets, such as the UK and Australia.
Additionally, the report stated that OpenAI has shifted from selling ads solely on a cost-per-mile (CPM) basis to also giving advertisers CPC optionwhich now makes up most of the ad spending on the platform.
“Obviously we’re in the advertising business now,” said Dennis Dresser, the company’s chief revenue officer.
Meanwhile, last week PYMNTS wrote about findings from digital data research platform Sameweb that showed just that 83% of inquiries Running ads within ChatGPT will never result in activation Google Shopping advertisement.
This gap “is not accidental, it’s structural,” the report said, noting that AI assistants are reaching shoppers at stages of the purchasing journey that keyword-based search was not intended to monetize.
“The difference is how each system reads intent. Google Shopping matches ads to stated product queries,” PYMNTS added. “ChatGPT displays ads during problem-solving conversations, research sessions, and multi-turn exchanges, where trading intent develops gradually rather than arriving at a prior ranking.”
Research by PYMNTS Intelligence found this 47% of online shoppers They used artificial intelligence during their last purchase. The same research showed that ChatGPT’s share as a product research tool rose from 2% to 30% in two years.
