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Predicting OpenAI's ad strategy

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Re: Predicting OpenAI's ad strategy

#181

There 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…

Meta, TikTok and social media create the cultural celebration of thinness that makes it possible for you to sell 25mg semaglutide tablets to everyone. In my opinion, they deserve more than 50% of your margin: you didn’t invent the drug, the FDA is basically letting you break the exclusivity policy for no particularly good reason, and you didn’t create the audience.

Re: Predicting OpenAI's ad strategy

#182
post #110

Earlier quoted context omitted.

“Your margin will soon be my margin.” The solution was/is and most likely will be antitrust but which administration will shatter the US tech market we are yet to see.

Well, both are 100 pct in the pocket so the only possible answer is a third entity which is highly unlikely.

Biden appointed Lina Khan. "Both parties are the same" is lazy and unhelpful.

Re: Predicting OpenAI's ad strategy

#183
post #113

Earlier quoted context omitted.

> slowly they'll become more part of the text Wouldn't that be quite challenging in terms of engineering? Given these people have been chasing AGI it would be a considerable distraction to pivot into hacking into the guts of the output to dynamically push particular product. Furthermore it would degrade their product. Furthermore you could likely keep prodding the LLM to then diss the product being advertised, especi…

Supposedly Google made their own results worse to improve ad revenue. And I don't see mass migration over to Kagi or Bing.

It was still better than those two. Until chatgpt came out and then it was crisis mode.

Re: Predicting OpenAI's ad strategy

#184
post #65

Earlier quoted context omitted.

> Google realized this a long time ago; there is no ad-free paid version of Google Search. Ad-free YouTube costs $14 a month (and the creators get a higher payout from premium user views than they do from the free, ad-viewing users).

Youtube premium is not ad-free.

It is.

I don't why people say this. They even include their own version of sponsor block, which is generous, because technically sponsor segments aren't even part of youtube, they are purely the creator deciding to make the ad part of their content.

Also, just to put it out there, many creators would likley be able to cut sponsored content if the 40% of viewers not viewing ads paid up. Not every creator is a greedy ruthless overlord, many just want to keep the lights on. Especially in tech/nerdy channels, where ad block use is the highest.

Re: Predicting OpenAI's ad strategy

#185
post #79

Earlier quoted context omitted.

“Have you tried the new models, bro?”

I’m convinced that there will be people declaring that this isn’t AGI all the way up to the moment that they become permanently unemployed.

You can all tell us “i told you so” when we meet each other in the bread lines comrade.

Re: Predicting OpenAI's ad strategy

#186

There 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…

That is very good framing for the problem with advertising today.

It also says that if you can find an audience to build a new ad platform, the incumbents have created enormous margin for the new platform.

Re: Predicting OpenAI's ad strategy

#187
The ad based business model is the most destructive technology of the new millennium. The whole point of advertising, to make people feel unsatisfied with their current life. The current state of the world makes perfect sense when you think of the last 20 years we've been cultivating fear, and dissatisfaction among the populace. All in the hopes of selling 0.1% more widgets.

Re: Predicting OpenAI's ad strategy

#188

Earlier quoted context omitted.

> Google realized this a long time ago; there is no ad-free paid version of Google Search. well there is also no 200$/month Google Search subscription

That is exactly my point: there easily could be, but there isn't. Based on how many commenters on HN and similar sites bemoan how Google Search quality has precipitously declined and yearn for the Google of ~10 years ago, I think there'd be nontrivial demand for a $200/month ad-free Google with no-nonsense comprehensive results. Such a product does not exist because it would ultimately be a net loss for Google.

Reminds me of vid.me, who picked up on the intense hatred towards youtube and launched a competing video host that actually got some serious traction. No ads, no subscriptions, just pure good content.

They went bankrupt in a year. Turns out internet consumers are just painfully entitled.

Re: Predicting OpenAI's ad strategy

#190

Earlier quoted context omitted.

The ads may not be announced. If ads can be subtly inserted “organically” through crafted weights then AI companies may try to claim that it isn’t advertising, if it’s even possible to catch them doing this. For instance, advertisers could pay to have their product embedded as the “best” in a category during training. If this is done as a fine-tuning step then it could be re-run later as advertisers and base models c…

How would the billing work for this? So much of advertising technology is tracking for the purposes of attribution. How does openAI know what to charge for a particular product and category? How do I know if my money was well spent to boost my product in that category? I don’t think you’re wrong! I’m just curious about how the new pricing models will work.

> How would the billing work for this? So much of advertising technology is tracking for the purposes of attribution.

This isn’t a necessary condition for an ad to exist. When companies pay for their name on a sports stadium, they use various proxies to tell whether their name recognition goes up, but by and large you just don’t know if it’s worth it.

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