OpenAI adds technology to compete for ad dollars

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OpenAI adds technology to compete for ad dollars

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OpenAI is adding product carousels to ChatGPT ads, while an AppsFlyer integration lets advertisers attribute app installs, purchases, and subscriptions to them.

The additions give OpenAI two capabilities needed to compete for performance budgets: shoppable ads built from product catalogs, and conversion measurement. They follow the recent introduction of automated product feeds.

Product feeds become carousels

The new carousel displays multiple products in an ad at the bottom of a ChatGPT conversation. Previously, ChatGPT ads largely featured one product.

The format uses product feeds that OpenAI introduced about three months ago. Retailers provide their catalogs, and OpenAI uses them to create single-product ads or carousels.

Advertisers don’t choose the format. OpenAI decides whether to show one product or a carousel, giving the platform control over how products are presented. Each carousel currently contains products from one retailer.

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AppsFlyer adds attribution

OpenAI partnered with AppsFlyer to connect ChatGPT ads with app installs, in-app purchases, and subscriptions, according to Adweek. Roughly 40 brands, including Grubhub, are testing it.

App marketers can now include ChatGPT in existing acquisition reporting and compare its attributed conversions with those from other paid channels.

The integration doesn’t measure incrementality or answer questions about reporting and optimization. But it gives advertisers evidence of whether ChatGPT ads lead to conversions.

OpenAI is building a performance ad system

In months, OpenAI has added product feeds, automated ad presentation, and third-party attribution. Retailers provide product data, OpenAI determines how products appear, and advertisers measure conversions.

That gives ChatGPT the basic infrastructure for performance advertising.

OpenAI is reportedly giving advertisers more guidance on feed-based campaigns ahead of Q4 and the holiday shopping season. That will test whether better merchandising and measurement attract larger budgets.

Advertiser control remains an issue. Because OpenAI chooses whether to show a single product or carousel, marketers need to know what drives that decision, how products perform, and what controls they will receive.

Scale is another unknown. Better formats and attribution make ChatGPT easier to test. They don’t show whether it can deliver enough conversions at competitive costs to earn sustained spending.

OpenAI built much of the machinery needed for performance advertising. Now it must prove it can deliver results at scale.

The post OpenAI adds technology to compete for ad dollars appeared first on MarTech.

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