More ads are coming to ChatGPT as Amazon signs new OpenAI deal

2 hours ago 7

Amazon and OpenAI partner up to enable more brands to buy adds in ChatGPT
US brands can join a pilot to buy ads directly via Amazon
Cost per click and per 1k impressions are options

Amazon has announced a new partnership between its Ads business and OpenAI, allowing advertisers to buy ads within ChatGPT.

Initially launching as a pilot in the US, the move would mean that brands can buy ChatGPT ads from Amazon DSP instead of having to deal with OpenAI itself, making it more accessible to brands that already use Amazon's platform.

The company noted that conversational advertising represents one of the fastest-growing opportunities for brands to reach consumers where they spend more and more time, and compared with other channels, it remains much more untapped.

US brands can now buy ChatGPT ad spaces via Amazon

Crucially, Amazon wanted that it does not control which ChatGPT conversations receive an ad, but rather it helps campaign setup and optimization. In other words, Amazon works as an intermediary to handle negotiating ad spaces with OpenAI.

Both text and image ads can be displayed underneath the chatbot's answer, with OpenAI set to display a clear sponsored ad label in order to keep a clear distinction between meaningful output and advertised content.

Amazon is also offering two payment types for its ChatGPT-bound ads – cost per click and cost per thousand impressions.

"Through our collaboration with Amazon Ads and ChatGPT Ads, we can leverage deep consumer insights to inform how and when Delta Vacations appear within ChatGPT Ads experiences to create new opportunities for travellers to engage and discover vacation possibilities," Delta Vacations President Katrin Koenig explained as one of the platform's early customers and users.

Sign up to the TechRadar Pro newsletter to get all the top news, opinion, features and guidance your business needs to succeed!

While OpenAI has its own, much smaller advertising program, partnering with Amazon gives it access to a huge pool of established advertisers already using Amazon. As the third-largest digital advertising business (per Marketing Dive) with an annual advertising revenue of around $70 billion, even a small proportion of this could mark a major boost for the ChatGPT maker.

Google logo on a black background next to text reading 'Click to follow TechRadar'

Follow TechRadar on Google News and add us as a preferred source to get our expert news, reviews, and opinion in your feeds.

With several years’ experience freelancing in tech and automotive circles, Craig’s specific interests lie in technology that is designed to better our lives, including AI and ML, productivity aids, and smart fitness. He is also passionate about cars and the decarbonisation of personal transportation. As an avid bargain-hunter, you can be sure that any deal Craig finds is top value!

Read Entire Article