OpenAI is updating its ChatGPT ad features while also expanding this side of the business in Mexico and Brazil.
OpenAI is upgrading its ad suite with a new carousel for ChatGPT.
The new format reportedly includes a carousel which shows multiple products, appearing in a single ChatGPT ad placement.
The product carousel is a long anticipated step forward, as up until recently, advertisers have been creating ‘product feeds’ within their campaigns. The side-by-side composition of the ads were designed to open the opportunity for carousel placements.
ChatGPT is quickly developing its ad offering, having recently introduced cost-per-click bidding with expanded measurement tools for advertisers.
Instead of asking advertisers to create individual ad units, the ChatGPT product carousel will pull information from the retailer’s feed. From there, the OpenAI ad platform algorithm will decide which products to display side-by-side.
This decision on which ad to show and when will be out of advertisers’ hands and will sit solely with OpenAI’s internal systems.
This update could transform ChatGPT into a more browsable marketplace, with room for multiple retailers and multiple products all alongside each other, tied in by relevance.
The news comes as Emarketer predicts OpenAI’s ad business to fall short of its revenue forecast by as much as 90%.
The AI firm projected it would reach $2.5bn in ad revenue by 2026 and $100bn by 2030 – however, so far ad revenue from ChatGPT, Amazon Alexa, and Microsoft Copilot combined is expected to reach around $1bn this year, and could hit a ceiling of $5.4bn by 2030.
In an effort to boost its ad business, OpenAI is pushing out new features to incentivise users and advertisers. Ads is also launching in Brazil and Mexico this week, meaning advertisers can now target users in these markets.
