ChatGPT’s first “advertiser”: The process was “not very AI,” and no data was provided.

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OpenAI's ChatGPT advertising pilot is off to an awkward start—the first group of advertisers say the process is technologically unsophisticated, and they haven't received enough data to prove ad effectiveness.

According to The Information, executives from two agencies serving early ChatGPT advertisers said they were unable to prove the ads brought any measurable business results for their clients. As OpenAI plans to open more ad sales next month, this early feedback adds uncertainty to the outlook for its advertising business.

For OpenAI and its investors, the ad business is of great importance. As of the end of February this year, ChatGPT had about 920 million weekly active users, but as of July last year, only about 5% were paying users. OpenAI projected consumer revenue (including ads and subscriptions) would reach $17 billion in 2024. How to monetize the massive free user base makes advertising a key piece.

"Phone + Spreadsheet + Email": An ad deal that feels very un-AI

The ChatGPT ad pilot began in early February this year, targeting U.S. free and lowest-paid users, with only a handful of advertisers included. Pricing is $60 CPM (cost per thousand impressions), on par with top-tier ad placements like NFL broadcasts; advertisers must commit at least $200,000 in budget up front.

But the buying process surprised the industry. One ad executive revealed that OpenAI has not provided any automated ad buying tools, forcing buyers to communicate with OpenAI reps only via phone calls, emails, and Excel spreadsheets—a sharp contrast to its AI identity.

More troublesome, ad impression frequency is severely lacking, and budget consumption falls far short of expectations. One agency executive said that although the pilot is halfway through, clients have only spent 15% to 20% of the committed budget.

Data Black Box: Only Clicks, No Conversions

The core issue in verifying ad effectiveness is data paucity. OpenAI currently only provides basic metrics such as impressions and clicks, while mature platforms like Meta and Google offer much richer performance data including audience profiles and conversion tracking.

To remedy this, OpenAI recently partnered with ad tech company Criteo, which specializes in retail ads and can provide ad purchase interfaces and some targeting technology. According to sources, Criteo is pitching solutions to advertisers at a minimum commitment of $50,000 to $100,000.

But the practical value of this partnership is questionable. One agency executive said OpenAI will only share limited targeting data with Criteo; another person familiar with OpenAI said the data shared with ad tech firms is limited to very basic information.

An OpenAI spokesperson said they currently provide aggregated data including clicks, impressions, and spend to advertisers and partners, and expect the data offerings to evolve as ad scale grows.

Although ad tech firms could help by running programmatic ad auctions (allowing advertisers to bid in real time to show ads to users), this doesn't seem likely now. An OpenAI spokesperson said the company has not yet discussed outsourcing its programmatic ad auctions with any external companies.

Expansion Soon, but Small Brands Still "Discouraged"

OpenAI is accelerating its efforts. According to two sources, OpenAI has recently notified agencies that they will expand the ad reach to users, planning to show ads to all U.S. users on free and low-cost ChatGPT versions in the coming weeks—a significant expansion from the pilot stage.

On the technology side, OpenAI plans to launch its own ad management software (Ad Manager), and is currently testing self-service tools with some partners, but has yet to announce a wide rollout timetable. The company is also negotiating with multiple external ad tech firms, including The Trade Desk, to connect to a broader advertiser base.

However, one agency executive admitted that, based on current experience, they would not recommend ChatGPT ads to small and medium clients unable to afford experimental budgets. Current marketers only allocate a small portion out of "unverified advertising" test budgets, without diverting from established channels like Meta or Google.

An OpenAI spokesperson said:

"ChatGPT is a trusted personalized environment for many people, so we are intentionally moving slowly—starting with a limited set of advertisers and formats and iterating as we learn."

This article is from WeChat Official Account ‘Hard AI’. For more AI news, please visit here

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