"OpenAI has shifted ChatGPT's advertising model from cost-per-thousand impressions to cost-per-click, a change that puts the company in direct competition with Google and Meta for performance advertising budgets."
"Advertisers can now set bids between $3 and $5 per click, according to screenshots of OpenAI's new ads manager, while the minimum spend has been cut from $250,000 to $50,000."
"The ads appear at the bottom of ChatGPT responses, labelled 'sponsored' and visually separated from the answer, ensuring users can distinguish between content and advertisements."
"OpenAI says advertisers cannot see user conversations, chat history, names, email addresses, or IP addresses, and receive only aggregated performance data showing total views and clicks."
OpenAI has changed ChatGPT's advertising from cost-per-thousand impressions to cost-per-click, with bids set between $3 and $5. This shift follows a decline in CPM from $60 to $25 within ten weeks. The new model aims to attract performance ad budgets, projecting $2.5 billion in ad revenue for 2026 and $100 billion by 2030. Advertisements are labeled as 'sponsored' and appear at the bottom of responses, while user data remains private. The minimum spend for advertisers has decreased from $250,000 to $50,000.
Read at TNW | Insights
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