OpenAI is partnering with advertising automation platform Smartly to bring conversational ads to ChatGPT. These interactive ad units will respond to users directly, turning advertisements into secondary chatbot dialogues within ChatGPT’s interface.
Six weeks after launching static ads for free-tier users, OpenAI crossed $100 million in annualized revenue with 600+ advertisers reaching less than 20% of eligible users. The original format placed sponsored cards beneath queries, like air fryer ads after countertop appliance questions. The new conversational formats let users click an ad and enter a tailored chatbot experience with product suggestions.
Smartly specializes in real-time campaign optimization across Meta, Google, TikTok, and Snapchat. Their role centers on performance optimization, adjusting creative and targeting based on user interactions with the new ad formats. OpenAI has also partnered with French commerce-media company Criteo, connecting approximately 17,000 advertisers to ChatGPT’s inventory since March 2.
This creates a three-layer conversation experience: user to ChatGPT, ChatGPT to user, then user to advertiser chatbot. The advertiser bot can provide product recommendations, answer specific questions, and guide users toward purchases without leaving the ChatGPT environment. Commerce happens inside the conversation.
If this approach gains traction, we’ll be optimizing for dialogue, not clicks, and planners and buyers will have to invent a way to negotiate conversational ad performance metrics that don’t exist yet.
The pilot’s rapid revenue growth suggests users accept ads when they’re contextually relevant. I’m keeping an open mind.
Every company needs a Claw strategy. Do you have one?
Author’s note: This is not a sponsored post. I am the author of this article and it expresses my own opinions. I am not, nor is my company, receiving compensation for it. This work was created with the assistance of various generative AI models.