Is OpenAI officially an adtech company? We think so.
Ads are one thing, but a new Digiday report shares that the company launched an ads manager last week that’s “broadly similar in layout to Google Ads.” It’s a self-serve tool that gives ChatGPT advertisers a way to view campaigns and measurement data directly.
Meanwhile, an Adweek report suggests click- and conversion-based ads may be coming soon, based on snippets of code found in the same ads manager. So, yes, a lot is happening at OpenAI.
If they’re not an adtech company, at the very least they’re the most covered non-adtech company on this adtech news site.
Why This Matters:
At a basic level, this is about making OpenAI—and ChatGPT—easier for advertisers and marketers to buy and use. But it also may signal a push well beyond Fortune 500 advertisers. There’s a real opportunity for midmarket buyers, for example, to enter the ChatGPT ad ecosystem with these new tools. (Midmarket is all the rage right now!) There are also signs of this shift in pricing, with the DIGIDAY report claiming that minimum campaign spend for ChatGPT may have dropped from $200,000 to $50,000.
Candidly, this is starting to sound like a strong fit for DTC brands, which tend to move faster than large enterprises when adopting new technology. To make that a reality, performance tools will be critical, as DTCs only spend when the results are there (even if the price drops).
If this plays out, ChatGPT could start competing with AppLovin and Meta on mobile, and Google on search. That’s a pretty notable competitive set.
Experts React:
Here are some of the more interesting posts on X we’ve seen about the news:
Mark Zagorski, CEO of DoubleVerify, had this to say on LinkedIn about OpenAI’s ad business:
“It’s going to take a sales infrastructure – both people (gasp) and tech, measurement protocols, and a drive to engage and learn with marketers.
Will they build, buy or partner? If Netflix is a model, the answer is “all of the above” at any given stage of their development.”
Our Take:
OpenAI is maturing quickly as a business. It’s focused on enterprise and has narrowed its product sprawl accordingly. Its push into advertising fits that strategy.
Ads represent a major revenue opportunity, with reports suggesting OpenAI could generate $100 billion from ads by 2030. The company is moving fast to build a scaled ads business—faster than most peers have historically.
That pace isn’t surprising, though, right? it’s consistent with how OpenAI has operated so far. And frankly, it’s a refreshing shift in what can feel like a stagnant adtech landscape dominated by the same players. (Also, there are only so many stories we can write about TTD. 😂)
AdTechRadar is owned by Chris Harihar, who leads PR at Mod Op. DoubleVerify is a Mod Op client.
