"This time last year, OpenAI finally seemed to reckon with the idea that it needed a cash influx by way of advertising. This year, that plan has been put into motion. In August, the tech behemoth scooped up Instacart's former CEO Fidji Simo as its new CEO of Applications. Then in September, OpenAI had taken the first steps in agentic commerce with Instant Checkout."
"Last week, Simo told Wired, The important thing before we ever consider ads is making sure that our commerce experience is fantastic To marketers, all signs point to an ad business and the upcoming holiday shopping season may be when the wheels start turning. This Black Friday, if all goes well, I'd say it's probably going to fast track it potentially quicker, said Digiday platforms reporter Krystal Scanlon, who joined the Digiday Podcast to breakdown what OpenAI ad products could look like."
"Here are a few highlights from the conversation, which have been edited for length and clarity. [Simo's comments in Wired] definitely came across like they need to have three things in order before they can look to have an ads business. It's the issues around data privacy, because they do have a wealth of data under their belts, and obviously that's going to be what advertisers want. They need to have the commerce proposition fully netted out and really working well."
OpenAI is moving toward an advertising business while prioritizing a strong commerce experience and data privacy. The company hired Instacart's former CEO Fidji Simo as CEO of Applications and launched Instant Checkout to advance agentic commerce. The plan depends on resolving data privacy concerns, building a reliable commerce proposition, and forging relationships with brands and advertisers. Consulting with brands about compute and internal workflows provides insight into advertiser needs. The upcoming holiday shopping season, particularly Black Friday, could accelerate any ad rollout if commerce capabilities and data safeguards perform well.
Read at digiday.com
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