ChatGPT Ads: $1 Billion Annual Revenue and Expanded Self-Service

OpenAI claims a symbolic milestone for advertising on ChatGPT and opens self-service in India, Europe, the Middle East, and North Africa. This expansion comes as Brussels places ChatGPT under VLOSE status, with new obligations and investigative powers under the DSA.

The EU places ChatGPT under VLOSE status with increased investigative powers

The European Commission has classified ChatGPT as a very large online search engine under the DSA, while Reddit and Roblox have received the designation of very large online platforms. These services have reported exceeding an average of 45 million monthly users in the EU, the threshold that triggers the status. OpenAI has four months from the notification to comply with the new obligations, with a deadline set for January 2027. The obligations concern the analysis and mitigation of systemic risks associated with the service and its algorithmic systems, encompassing the spread of illegal content, negative impacts on minors, user well-being preservation, safeguarding individual rights, as well as issues related to electoral processes and public safety. This status grants the EU Commission expanded powers to investigate the functionalities of ChatGPT, in collaboration with Coimisiún na Meán in Ireland. The Commission describes ChatGPT as a hybrid service integrating web search capabilities, which is why it is treated as a search engine. ChatGPT was already subject to the general obligations of the DSA for search engines, and the VLOSE status adds an additional layer. Henna Virkkunen emphasizes enhanced oversight and accountability and indicates that monitoring will continue for potential new designations. In total, 28 platforms and search engines have been designated, with enforcement shared between the Commission and national coordinators.

Self-service open in India, Europe, the Middle East, and North Africa

OpenAI now offers self-service access to Ads Manager for India, Europe, the Middle East, and North Africa. As of today, companies located in these territories have the option to create an account and launch campaigns, with the ability to use CPC bidding or results-optimized campaigns, without needing to go through a dedicated sales team or agency partner. Until now, access to ChatGPT Ads in these regions was only available through managed channels. In countries where self-service is not offered, access continues to be through the same intermediaries. The extension to these four regions represents the immediate operational change.

Commercial scope: $1 billion annual run rate and thousands of advertisers

ChatGPT's advertising product has surpassed a $1 billion annual run rate in less than 200 days. Tens of thousands of advertisers are now utilizing the tool, initially launched under a managed sales model through agencies and partners. The service is available in over 40 countries, supported by an ecosystem of more than 50 technology and measurement partners. Introduced in May, Ads Manager has opened the door for SMEs without managed contracts, which OpenAI estimates contribute significantly to total revenues. The share of revenue from advertisers outside the United States is increasing, and large accounts are running campaigns across multiple markets simultaneously.

The advertising system selects ads based on conversation content

The advertising system relies on the content of the ongoing conversation to select relevant ads. Depending on the country and chosen parameters, targeting can incorporate a broader usage context when the user has consented. OpenAI describes formats that reflect both immediate demand and, if enabled, broader interests and preferences. The company claims to base its principles on protecting user trust: ads are labeled, separated from ChatGPT's responses, and do not alter what the system replies. Advertisers do not have access to private conversations, and users retain control over personalization. OpenAI specifies that its internal mechanisms related to trust, relevance, and overall experience have remained robust during the global rollout, although it has not published any figures.

Most active campaigns rely on CPC or optimized bidding

The majority of active campaigns use CPC bidding or results-optimized bidding. Pixel and Conversions API integrations are the primary means of reporting conversion events for measurement and optimization. OpenAI has added product feeds to synchronize catalogs, while platform and geographic targeting restrict delivery to specific devices or locations. Custom audiences allow for addressing existing customer lists. OpenAI claims that the combination of these components helps reach the most relevant customers. In reported results, an e-commerce advertiser reportedly achieved a ROAS of 3x over 28 days, and a technology partner estimates that over 80% of the generated traffic comes from new customers.

Announced next steps: new markets, formats, and measurement capabilities

The next step aims to bring ChatGPT Ads to new markets, with the introduction of additional ad formats and campaign objectives. OpenAI also plans to enhance purchasing options and measurement capabilities. The company indicates it wants to explore more native ways for brands to interact with consumers within ChatGPT, without providing details or a timeline.