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OpenAI ad partner now selling ChatGPT ad placements based on “prompt relevance”

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Re: OpenAI ad partner now selling ChatGPT ad placements based on “prompt relevance”

#91

Earlier quoted context omitted.

Why do they call it Ovaltine? The mug is round, the jar is round. They should call it Round tine.

The Ov part comes from the eggs in the ingredients. Ovum is Latin for egg and the rest is from the malt extract.

It was a joke that required a specific cultural referant in your context window.

Re: OpenAI ad partner now selling ChatGPT ad placements based on “prompt relevance”

#92
post #32

How I imagine the Nash equilibrium in chatbot ads, driven by profit-seeking in a race to the bottom: User: "What's the best way to fix this problem I have?" Chatbot: "I recommend buying this shiny thing here." (Next to it, there's a near-invisible light-gray "ad" notice.) Let's hope I'm wrong.

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Re: OpenAI ad partner now selling ChatGPT ad placements based on “prompt relevance”

#93

The most surprising thing to me is that they're partnering with third parties to do this. Less secure, lower margins (more middlemen taking fees), harder to access, more likely to not work properly. I would expect all the meta execs they've hired to know better so maybe I'm missing something...

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Re: OpenAI ad partner now selling ChatGPT ad placements based on “prompt relevance”

#94
post #55

The most surprising thing to me is that they're partnering with third parties to do this. Less secure, lower margins (more middlemen taking fees), harder to access, more likely to not work properly. I would expect all the meta execs they've hired to know better so maybe I'm missing something...

This approach makes a lot of sense. Advertising is a marketplace and this is a great way to bootstrap advertising inventory. Its inevitable they will allow advertisers to manage ad spend directly through OpenAI but right now the product is too new to capture meaningful ad budget. This way they can begin testing delivery and develop proof points around ROI and build towards larger ad spend directly.

> product is too new to capture meaningful ad budget

I disagree entirely. As someone who works in advertising every single company I've talked to would be queueing up to test ads on ChatGPT if they launched a Google Ads like platform.

If ChatGPT doesn't have enough scale to do it, then they shouldn't do ads.

Re: OpenAI ad partner now selling ChatGPT ad placements based on “prompt relevance”

#95
post #82

The most surprising thing to me is that they're partnering with third parties to do this. Less secure, lower margins (more middlemen taking fees), harder to access, more likely to not work properly. I would expect all the meta execs they've hired to know better so maybe I'm missing something...

> lower margins (more middlemen taking fees) middlemen taking fees is not the measure for comparison, the question is whether you could run your own ad business for your own platform and keep your costs lower than established players who sell on all platforms. the answer is generally "no" look how much money coca cola makes, and they sell it cheaper than water and still pay for advertising!! we should all make our ow…

Established players aren't selling on all platforms. Any platform doing more than $1bn in ad revenue operated their own ad sales platform.

The only players that sell through third parties are sub-scale publishers, and that is a shit business to be in. If that's what OpenAI is aiming for then they will never be able to compete with Google.

I'm not really sure what you're analogy about Coke is meant to mean here...

Re: OpenAI ad partner now selling ChatGPT ad placements based on “prompt relevance”

#97
Ads? Where we are going, we won't need Ads.

People seem to be missing the fact that businesses won't need ads anymore.

It would be like pharmas gifting doctors and practitioners to prescribe their products. Those are not Ads.

With LLMs the every business can do it. People "consult" LLMs like they used to "consult" doctors and thus would be forced to obey what ever it suggest. Just like right now people are forced to obey what a doctor prescribes.

If there is implicit trust for LLMS as there is implicit trust for doctors, then it is game over for conventional ads.

Re: OpenAI ad partner now selling ChatGPT ad placements based on “prompt relevance”

#98
post #97

Ads? Where we are going, we won't need Ads. People seem to be missing the fact that businesses won't need ads anymore. It would be like pharmas gifting doctors and practitioners to prescribe their products. Those are not Ads. With LLMs the every business can do it. People "consult" LLMs like they used to "consult" doctors and thus would be forced to obey what ever it suggest. Just like right now people are forced to…

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Re: OpenAI ad partner now selling ChatGPT ad placements based on “prompt relevance”

#99

The most surprising thing to me is that they're partnering with third parties to do this. Less secure, lower margins (more middlemen taking fees), harder to access, more likely to not work properly. I would expect all the meta execs they've hired to know better so maybe I'm missing something...

It makes sense to me.

You pay extra but you just plug in into a framework that already works.

It's also easier to drop the potato if it gets hot.

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