Hacker News Board Hacker News, browsed like a classic message board
Live data from Hacker News

Predicting OpenAI's ad strategy

ossa-ma.github.io

Post reply on HN
Print view View original

351–360 of 552 posts

Re: Predicting OpenAI's ad strategy

#351

Post by Aurornis »

pepinator wrote: post #224
Aurornis wrote: post #192

Earlier quoted context omitted.

> The new business line will cost about $2M in software dev, and $3M for the new facility. The advertising budget? $40,000,000 (annual). The reason the advertising budget is such a high number and a recurring charge is that effective advertising returns an ROI on each dollar spent. If the software budget was increased 10X to $20 million, would the company get 10X as many customers? No. What about the facility? If you…

it surprises me how many people simply don't get the point. they say "they make more money this way, so it's ok". no big picture at all.

What big picture? Can you elaborate, or just snide drive-by criticisms?

I mean I understand that a lot of people in this comment section wish ads didn’t exist and that everyone just automatically knew about relevant products and services without ads, but it all reads like utopian fantasy stuff.

Re: Predicting OpenAI's ad strategy

#352

Post by littlecranky67 »

HDThoreaun wrote: post #345
littlecranky67 wrote: post #344

Earlier quoted context omitted.

See my sibling response. More people will use adblock if all they have to do is prompt a single line into their computer. Hell people will not even visit websites. They will ask AI to present it in whatever form they prefer. I can have a big-breasted anime character reading my personalized news for me, or have it printed in a 1890 style newspaper. Ads will not make it into either format, because I prompt that out.

Using adblock right now is even easier than that though. Most people will not use a command line, but going to https://chromewebstore.google.com/ , searching adblock and clicking install is something literally anybody could do.

Not on mobile.

Re: Predicting OpenAI's ad strategy

#353

Post by fweimer »

Aurornis wrote: post #349
fweimer wrote: post #313

Earlier quoted context omitted.

A lot of people enter the company or product name into the browser's search field and reach their intended target through an ad at the top of the results. If they proceed to purchase something, does this count as a conversion? I think it does. Unlike traditional advertising, this didn't influence the customer's decision to buy at all.

> A lot of people enter the company or product name into the browser's search field They had to already know the company name or product name to get there. This doesn’t just happen . Spreading the name of the product and getting it to stick in people’s minds takes a lot of advertising budget, on the whole.

I'm concerned that companies spend their advertising budget on these redirects because those have the best metrics, instead of actually making the brand and its products more known.

Re: Predicting OpenAI's ad strategy

#354

Post by simianwords »

MontyCarloHall wrote: post #6

I 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…

There's absolutely no way this is happening. Want to bet?

Re: Predicting OpenAI's ad strategy

#355

Post by simianwords »

MontyCarloHall wrote: post #6

I 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…

Strange that people even think this possibility is true. Name any other subscription that you can't use without ads?

- youtube

- hulu

- netflix

- spotify

- photoshop

I can't think of a single other one that one can use that still shows ads. Absurd proposition because llm's are more fungible and once you start forcing ads, competitors will barge in.

Re: Predicting OpenAI's ad strategy

#356

Post by simianwords »

ben_w wrote: post #80
KellyCriterion wrote: post #31

Earlier quoted context omitted.

I stumbled upon this one as well, but I do not understand it really: Why is my job safe if Ads prove there is no AGI? Because even if there would be AGI, they could (and would?) serve ads anyway?

If your job is gone forever, with what money are you going to buy the thing in the advert? If nobody can buy the thing in the advert, the value of the ad slot itself is zero.

This is silly, so why does chatgpt ask for monthly payments if AGI is imminent? With what money would we pay them?

Re: Predicting OpenAI's ad strategy

#357

Post by simianwords »

pessimizer wrote: post #326
mmaunder wrote: post #218

I’m fascinated at how out of touch that NYT article is. It’s as if it was written by someone who just spent 3 years on the moon. “The next big thing will be agents: The models will fill digital shopping baskets and take care of online bills. They will act for you.” Golly Mr two times Pulitzer nominee, do tell us more! There is a kind of liberal arts elite that seems to not be using AI very much and not be buying any…

I have no idea why so many people think that an argument that AI works is the same thing as an argument that AI will be profitable. The better AI gets, the better the training techniques get, and the better the algorithms get will result in fewer processors needed to run something of use. All of the advances will end up in the public domain if not immediately after or before they are even implemented, soon after. The…

funny i keep seeing AI is not profitable simultaneously because it is too expensive to run and that it is too cheap to run.

Re: Predicting OpenAI's ad strategy

#358

Post by simianwords »

toddmorey wrote: post #121

OpenAI is here because Sam Altman is NOT a product guy. He craves Apple style consumer success, but he's terrible at productizing his technology. Remember the marketplace of custom GPTs? Hell even the name ChatGPT. Anthropic had to show them how to build useful workflows for developers using AI. Meanwhile, OpenAI delivered... Sora. To actually quote Sam Altman: "I think of ads as a last resort for a business model."…

"OpenAI is here because Sam Altman is NOT a product guy. He craves Apple style consumer success, but he's terrible at productizing his technology"

Seriously, consider putting more thought and effort into your comments. This is wildly out of touch and I think it is because people lack the creativity to imagine the counterfactual - some one else running OpenAI.

OpenAI is remarkably well run - it is a fairly good product. The best model so far, the best experience, the 2nd best coding experience.

Re: Predicting OpenAI's ad strategy

#360

Post by jadenpeterson »

hasbot wrote: post #272
jadenpeterson wrote: post #106

I can't be the only person completely unconcerned about this state of affairs. They're ads. This is the most straightforward incentive structure in the world - they are paid to supply ads on behalf of other companies, and we consume those ads and are, in turn, provided with their product. I don't know why it is, but people are incapable of evaluating this exchange objectively - there's something inherently detestable…

Is this an ad for Zyns (whatever that is; I refuse to do a web search to find out)?

No LOL. Zyns are nicotine pouches you insert into your gums for a gradual release of nicotine. They're powerful. Unfortunately, I went from using 3mg Zyns to 6mg Zyns, and had to sit in front of my bathroom sink, fighting the urge to retch. Be careful with them, but they're a good way to ramp up to cigarette smoking
Post reply on HN