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Leak confirms OpenAI is preparing ads on ChatGPT for public roll out

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Re: Leak confirms OpenAI is preparing ads on ChatGPT for public roll out

#31

Post by kavrick »

Andrex wrote: post #27
aurareturn wrote: post #14

- ~1 billion users in just 3 years - Extremely personal data on users - Novel way of introducing and learning more about sponsored products - Strong branding for non-techie people (most normal people don't know what Claude or Gemini are) - An app that is getting more and more addictive/indispensable I think OpenAI is going to kill it in ads eventually. This is why Meta and Google went all in on AI. Their lucrative di…

Spinning up an all-new ad network is pretty tough. I would think OpenAI would need to beat Meta/Google on basics like CPM in order for the network effects to make it desirable for ad vendors over Meta/Google. Ad budgets are fixed and zero-sum and vendors (in my head, I don't know) would prefer to spend their money on the best network giving the best results. I don't know if ads in LLM chats can get there.

Microsoft owns a big chunk of them and already has a big network. Why not just use theirs?

Re: Leak confirms OpenAI is preparing ads on ChatGPT for public roll out

#32

Post by aurareturn »

Andrex wrote: post #27
aurareturn wrote: post #14

- ~1 billion users in just 3 years - Extremely personal data on users - Novel way of introducing and learning more about sponsored products - Strong branding for non-techie people (most normal people don't know what Claude or Gemini are) - An app that is getting more and more addictive/indispensable I think OpenAI is going to kill it in ads eventually. This is why Meta and Google went all in on AI. Their lucrative di…

Spinning up an all-new ad network is pretty tough. I would think OpenAI would need to beat Meta/Google on basics like CPM in order for the network effects to make it desirable for ad vendors over Meta/Google. Ad budgets are fixed and zero-sum and vendors (in my head, I don't know) would prefer to spend their money on the best network giving the best results. I don't know if ads in LLM chats can get there.

I'm betting that they can.

Here's an idea that just popped into my head:

ChatGPT shows a sponsored entry in chat history list with a colorful border around it to get users to click. This product is something that ChatGPT knows the user desperately needs from previous chats. The user can chat directly with the product and learn more about it. The advertiser specifically sent OpenAI information (like a RAG) about their products buyers might have questions for.

When the user is ready, they can open a link to the product's website or just buy directly in ChatGPT.

Re: Leak confirms OpenAI is preparing ads on ChatGPT for public roll out

#33

Post by dktp »

Andrex wrote: post #27
aurareturn wrote: post #14

- ~1 billion users in just 3 years - Extremely personal data on users - Novel way of introducing and learning more about sponsored products - Strong branding for non-techie people (most normal people don't know what Claude or Gemini are) - An app that is getting more and more addictive/indispensable I think OpenAI is going to kill it in ads eventually. This is why Meta and Google went all in on AI. Their lucrative di…

Spinning up an all-new ad network is pretty tough. I would think OpenAI would need to beat Meta/Google on basics like CPM in order for the network effects to make it desirable for ad vendors over Meta/Google. Ad budgets are fixed and zero-sum and vendors (in my head, I don't know) would prefer to spend their money on the best network giving the best results. I don't know if ads in LLM chats can get there.

Spotify, Netflix, Amazon Prime, Reddit, Twitter etc all have increasingly profitable ads

I'm sure llm providers will also figure it out in due time. Consumer products are generally a good fit for ads, even if it takes time to reach full potential

Re: Leak confirms OpenAI is preparing ads on ChatGPT for public roll out

#34

Post by RobotToaster »

ChrisMarshallNY wrote: post #15
jmkni wrote: post #11

I guess this could also have a knock-on effect, in that ChatGPT will steer it's users away from topics advertisers might find distasteful Like it might not want to tell you about negative health effects from McDonalds, if McDonalds becomes a major source of ad revenue

In the 1980s, the American Heart Association listed many contributors to heart disease. A missing one: smoking. At some point, it was revealed that Big Tobacco was a major contributor to the AHA. They now list tobacco as a big risk factor.

"friends of the earth" was originally funded by the oil CEO Robert Anderson to oppose nuclear power.

Re: Leak confirms OpenAI is preparing ads on ChatGPT for public roll out

#35

Post by kaffekaka »

vntok wrote: post #21
mohsen1 wrote: post #16

Can you imagine how annoying ads in the voice interface would look like? Ugh

You'd most probably wouldn't be able to tell for sure. Ads will be subtle and flow as background music to the onversation. Talking to the AI while on your daily commute will make you thirsty for some sort of hot beverage while ChatGPT tells you all about sirens in Greek mythology.

But why the hell would I want to talk to the AI while on my daily commute? Do people do that?

Re: Leak confirms OpenAI is preparing ads on ChatGPT for public roll out

#36

Post by coffeebeqn »

JadoJodo wrote: post #26

Now we just have to wait and see whether it’s… “I’d be happy to answer your question… right after a word from our sponsor: Xyeniceli. Side effects may include ...” OR ChatGPT: “Why don't you let me fix you some of this Mococoa drink? All natural cocoa beans from the upper slopes of Mount Nicaragua. No artificial sweeteners.” User: “What the hell are you talking about? Who are you talking to?” ChatGPT: “I've tasted ot…

I think it’ll be more like. “Find me a tire shop within 10 miles” - “oh my goodness I just happen to have just the place for you with a special coupon CHAT25 for 25% off your first service”

Re: Leak confirms OpenAI is preparing ads on ChatGPT for public roll out

#37

Post by iLoveOncall »

aurareturn wrote: post #14

- ~1 billion users in just 3 years - Extremely personal data on users - Novel way of introducing and learning more about sponsored products - Strong branding for non-techie people (most normal people don't know what Claude or Gemini are) - An app that is getting more and more addictive/indispensable I think OpenAI is going to kill it in ads eventually. This is why Meta and Google went all in on AI. Their lucrative di…

Trust in LLMs is easily broken, and many users are starting to see the cracks. Once those AI companies start rolling out ads inserted in the answers, the quality will go down even more, and they will burn the last good will of the people.

There is no moat because their only way to make money is to self-destruct.

Talking on a more practical POV, your cost to display the ads needs to be lower than what companies pay you for advertising. And while companies might be willing to pay a small premium for "better" targeting because the LLM supposedly has more personal data about users, the cost to deliver those ads (generating answers via LLMs) is several orders of magnitude higher than for traditional ads served on websites.

So even sticking to a purely technical aspect, ads might simply not be profitable when integrated in LLM answers.

Combine the two aspects, and OpenAI is all but a dead company.

Re: Leak confirms OpenAI is preparing ads on ChatGPT for public roll out

#39

Post by fwip »

nothrabannosir wrote: post #4
Madmallard wrote: post #2

RIP their stock price once that’s live Probably can make a ton of money shorting that

Would love to know your reasoning because when I look at SPY there’s quite a few ad companies in there, and heavily weighted, too. Why would Wall Street love ads on them but hate it on openai?

One reason is that it means "general AI" is likely farther away. If it were close, they wouldn't need to spend resources on sucking pennies from their free users.
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