OpenAI Sells Off Unsold ChatGPT Inventory Through PubMatic and Magnite

Key Takeaways

1OpenAI opens the unsold advertising inventory of ChatGPT to PubMatic and Magnite

2The technical integration relies on OpenRTB and limits access to user data

3Volumes remain modest, profitability will depend on conversions and inference costs

4Upcoming milestones include the 10-Q reports and an update to the advertising API

Why it matters : OpenAI aims to capture Search budgets with a conversational format, but viability will depend on the ability to generate conversions and manage costs.

OpenAI opens its unsold ad inventory on ChatGPT to programmatic buying, relying on PubMatic and Magnite. The integration, compatible with OpenRTB, limits data sharing while allowing for semantic targeting. Volumes remain cautious, and inference costs weigh on the equation, while markets have reacted positively.

Conversions, inference costs, and measurement milestones dictate the outcome

The profitability of advertising in ChatGPT must contend with the computational cost of language models. Each inference request generates fixed charges, and revenues from programmatic auctions must cover these costs. Guarantees on return on investment are expected before committing to larger budgets, and success will depend on conversion rates measured during evaluation phases. Investors will be watching the upcoming 10-Q statements from PubMatic and Magnite, which should shed light on the share of revenues attributable to AI versus display. An upcoming update to OpenAI's advertising API is expected to clarify the criteria for conversion attribution, a step deemed crucial for assessing the impact on information retrieval. In the short term, inventories remain more limited than those of historical engines, and transaction volumes remain modest.

Le brief IA que lisent les pros

Le brief IA que les pros lisent chaque soir

Les 7 actus IA du jour, décryptées en 5 min. Gratuit.

Inclus dès l'inscription : notre sélection des meilleurs guides & comparatifs IA.

Choisissez votre rythme

Gratuit · Pas de spam · Désabonnement en 1 clic

PubMatic (+4.5%) and Magnite (+5%) stocks rise on the market

Markets welcomed the opening of ChatGPT's inventory, with PubMatic's stock rising by 4.5% and Magnite's by 5%. Investors value access to a significant audience of artificial intelligence. The partnership absorbs unsold impressions from OpenAI's direct sales, while connecting the application to automated buying tools already in place with advertisers.

An OpenRTB circuit where OpenAI retains control over display

Acquisition teams maintain their practices: they manage budgets and bid limits from their demand-side platforms and submit creatives without changing tools. On the supply side, Magnite and PubMatic act as intermediaries, directing requests to OpenAI's APIs within a framework compliant with the OpenRTB specifications from the IAB Tech Lab, avoiding the need for new software deployments. OpenAI retains exclusive control over display decisions: its algorithm analyzes user input and can insert an ad at the end of a response. Intermediaries do not receive full transcripts or subscriber account histories. The protocol, aligned with the publisher's broadcasting rules, limits data exposure while allowing for semantic targeting.

From outbound clicks to brand dialogue, with lowered CPM

Compared to traditional Search that directs users to external sites, ChatGPT offers integrated formats where users interact with brand content within the conversation. Intent qualification occurs within the discussion thread. To encourage usage, OpenAI has reduced its cost per thousand impressions, pricing presented as an incentive to test the conversational format. The publisher thus aims to position itself against sponsored link mechanisms.