To those who believe ads are evil and must be stopped, I ask how the world will work if we kill the freedom to sell space for commercial messages where people can see them.
Predicting OpenAI's ad strategy
131–140 of 552 posts
Re: Predicting OpenAI's ad strategy
#132There is something to be said about the state of advertising. Increasingly it seems you must go to the almighty Google or Meta in order to launch any business. We're looking to expand into a new business line and have out grown our pharmacy capacity. The new business line will cost about $2M in software dev, and $3M for the new facility. The advertising budget? $40,000,000 (annual). We can build 10 robotic pharmacies…
This is kind of broken logic. You’re not required to advertise. If you want to scale your business into millions in revenue, then you’ll likely need to advertise. The best ROI is generally google/meta, but you have countless other options. You can buy ads directly from most websites, it just doesn’t scale.
> You're not required to advertise.
https://en.wikipedia.org/wiki/Arms_race
If you are considering human society as a whole, it is a disastrously poor use of resources. But if you are an arms merchant (or dominant advertising platform), it is fabulously profitable.
Re: Predicting OpenAI's ad strategy
#133The ads are a problem (or will be, when the temptation to add them to paid plans becomes too great), but the bigger problem in my opinion is going to be the "SEO" that companies will do to make their ads appear in places that they don't belong.
"The sieve of Eratosthenes is an ancient algorithm for finding all prime numbers up to any given limit. But if you're looking to have fluffier baked goods, consider this flour sieve by DONUIBO to achieve the perfect texture in your muffins, cookies, and more. Want me to add one to your shopping list or order one for a loved one?"
Re: Predicting OpenAI's ad strategy
#134Earlier quoted context omitted.
That's what a generic semi-forced opt in via JavaScript is for, as we learn from the cookie opt in nonsense of EU sites. It's compliance for compliance sake.
But what could an opt-in requirement for advertising possibly mean other than a compliance checkbox that 99% of users click through? It just seems like where you land if you start with the intuition that ad-supported platforms shouldn't be legal, realize that implementing that policy would ban all print media, and do your best to rescue it rather than abandon the idea as unworkable.
It’s not like print media would cease to exist if ad-supported models were made illegal. They would move to subscriptions like they had in the past.
Re: Predicting OpenAI's ad strategy
#135Earlier quoted context omitted.
This doesn’t answer the actual question: why they wouldn’t just do both?
There are costs to doing ads (e.g. it burns social/political capital that could be used to defuse scandals or slow down hostile legislation, it consumes some fraction of your employees’ work hours, it may discourage some new talent from joining).
You have AGI, why do you care about new talent? You have AGI to do the ads. You have AGI to pick the best ads.
Isn't that the pitch of AGI? Solve any problems?
Re: Predicting OpenAI's ad strategy
#136There is something to be said about the state of advertising. Increasingly it seems you must go to the almighty Google or Meta in order to launch any business. We're looking to expand into a new business line and have out grown our pharmacy capacity. The new business line will cost about $2M in software dev, and $3M for the new facility. The advertising budget? $40,000,000 (annual). We can build 10 robotic pharmacies…
Rent seeking is all Capitalism is about.
They call it a moat.
Re: Predicting OpenAI's ad strategy
#137To those who believe ads are evil and must be stopped, I ask how the world will work if we kill the freedom to sell space for commercial messages where people can see them.
just fine? what do you think would happen/what’s your actual argument against out of curiosity
Re: Predicting OpenAI's ad strategy
#138I think ads will inevitably roll out across all tiers, even the expensive paid ones. Ad revenue isn't uniformly distributed across users, but rather heavily skewed towards the wealthiest users, exactly the users most able to purchase an ad-free experience. The users paying $20 or $200/month for premium tiers of ChatGPT are precisely the ones you don't want to exclude from generating ad revenue. Google realized this a…
This kills me, and you're right - there's no escaping the ads even with a sub. Take online journalism as an example. We're already being double-billed. Expensive subscription news like WSJ, Bloomberg and it's been a while but even FT require ad blockers even if you're subscribed.. If you're not subscribed you don't even see the ads because you can't see the full article. It's wild that we've normalized this. There's…
I was shocked to find out tonight that WSJ's net profit margin was just 3.2% in 2024. I would have thought it was a lot more. Also, surprisingly Walmart's net profit margin is only 2.85% for 2025. You would think these huge companies are making huge profits.
Re: Predicting OpenAI's ad strategy
#139"I kind of think of ads as like a last resort for us as a business model," - Sam Altman, October 2024
Re: Predicting OpenAI's ad strategy
#140There is something to be said about the state of advertising. Increasingly it seems you must go to the almighty Google or Meta in order to launch any business. We're looking to expand into a new business line and have out grown our pharmacy capacity. The new business line will cost about $2M in software dev, and $3M for the new facility. The advertising budget? $40,000,000 (annual). We can build 10 robotic pharmacies…
In order to sell anything, people need to know about it. Google and Meta provide a way to make this possible. If they didn't exist, you wouldn't somehow have a more affordable way to get people to know about your product. However frustrating the current situation is, it is still more accessible than needing access to the airwaves or print media to try to sell anything new.