OpenAI: Advertising in ChatGPT Hindered by Limited Tools

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Key Takeaways

1OpenAI aims to charge for ads in ChatGPT on a per-click basis, exploring campaigns optimized for purchases.

2Current ad rates, ranging from $15 to $25 CPM, are well below the target of $60, extending the pilot phase.

3Advertisers lament the lack of detailed tracking tools and precise targeting, making ChatGPT less competitive against Meta and Google.

💡Why it matters — OpenAI's current limitations in advertising could hinder its ambitious revenue goals for 2026 and 2027.

OpenAI and Its Advertising Ambitions in ChatGPT

OpenAI is looking to transform its advertising model in ChatGPT by introducing a pay-per-click billing system, in addition to impressions. The company is also exploring campaigns based on specific actions, such as purchases or app downloads. However, no specific timeline for these new initiatives has yet been communicated, according to an agency representative.

A Gap Between Ambitions and Reality

The current advertising rates in ChatGPT, ranging from $15 to $25 per thousand impressions (CPM), are significantly lower than the target of $60. This situation has led OpenAI to extend its pilot phase, as the company was unable to serve enough ads to exhaust the budgets committed by advertisers. The pilot phase for the initial advertisers has been extended beyond the end of March.

OpenAI is expanding its advertising business in ChatGPT and introducing new pricing models. The changes aim to make ChatGPT more attractive to advertisers. OpenAI has informed its investors that it expects to generate $2.4 billion in advertising revenue by 2026 and aims for $11 billion by 2027. In a blog post, the company revealed that its pilot program had reached over $100 million in annual recurring revenue in just six weeks.

Insufficient Tracking and Targeting Tools

One of the biggest issues is data. OpenAI currently provides advertisers only with aggregated metrics such as impressions, clicks, and spending. Unlike Meta and Google, OpenAI offers only aggregated metrics, without the detailed tracking tools expected by advertisers. Ben Kahan from the agency Brainlabs points out that this lack of precise measurement capabilities leads many clients to be cautious.

Ad targeting is also problematic. OpenAI only offers broad topic tags, making it difficult to control the precise context in which ads appear. Given that each response from ChatGPT is unique, it is almost impossible to control what content an ad appears next to. Kahan notes that the same question can be answered in a thousand different ways, making brand safety hard to guarantee.

Adjustments and Collaborations to Improve the Offering

To address these challenges, OpenAI has launched a self-service portal for managing advertising campaigns and is collaborating with Criteo, an advertising technology company. The monthly spending threshold has been adjusted to $30,000-$50,000, down from an initial commitment of $200,000.

Ambitious Financial Goals

Despite these obstacles, OpenAI aims for advertising revenues of $2.4 billion by 2026 and $11 billion by 2027. The company has already announced that its pilot program generated over $100 million in annual recurring revenue in just six weeks.