As a user, I was about to cancel my ChatGPT subscription when I saw the news. OpenAI is adding ads.
As a marketer, I’m excited.
This is the first trustworthy new ads channel since Apple Search Ads, something like 10 years ago. It’s like ads inside an app that have more trust than Google.
OpenAI Knows More Than Google
Any AI knows more than a search engine. We share everything with it. We ask for advice, tell it who we are. Upload sensitive files and data.
Someone asks ChatGPT “plan my 3-day solo trip to Rome.” Google only sees “Rome hotels.” ChatGPT sees the full picture: who you are, what you want, why you’re going.
ChatGPT has an insane opportunity to target anyone.
What It Means for B2B
Most B2Bs are looking to get leads like: C-level pro, mid-market size business, has a specific pain to solve.
ChatGPT knows every single one of these people.
If they allow keyword targeting, and I assume they will, you’ll be able to focus on pain points your ICP is trying to solve. Could be pretty good for B2B lead generation.
What It Means for B2C
The ability to find corner case scenarios where users need the product — and Facebook and Google ads don’t know that.
My Predictions
I bet OpenAI would set the minimum bid of $1, like LinkedIn. It means clicks would cost something like $2-7 for most countries.
They could add two types of targeting: user prompts and model answers. If so, the best setup should be something like: 1 ad group - 1 keyword of one type. Just like Google Ads used to work in the past.
Also, they could add some media placement with reach payments.
The Arbitrage Opportunity
Every new ad platform starts the same way — low competition, cheap CPMs.
Facebook in 2012. TikTok in 2020. The early movers get underpriced attention before the big players come in.
ML is the core of current ad algos, but how strong are these models really? Would OpenAI models be stronger? I think so.
I see a great chance for traffic arbitrage in the upcoming months.
One thing for sure, I’m going to try it as soon as it is released.