Source: OpenAI targets ~$60 per 1,000 views for ChatGPT ads, on par with live NFL broadcasts and above Meta's sub-$20 CPM, while offering little conversion data
In its initial rollout of ads, OpenAI is charging prices that rival those for coveted video programs like the NFL …See also Mediagazer
The Information
Related Coverage
- OpenAI is working out how much to charge for ChatGPT ads The Verge · Stevie Bonifield
- OpenAI could take down Google's $260 billion ad empire. Here's how Fast Company · Thomas Smith
- ChatGPT ads come with premium prices — and limited data Search Engine Land · Anu Adegbola
- OpenAI reportedly launches ChatGPT ads at premium TV prices The Decoder · Matthias Bastian
- Really exciting to see Brian Stempeck and Evertune AI featured in The Information's article on OpenAI's new ads offering. … Mark Engle
Discussion
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@dbreunig
Drew Breunig
on x
If you're curious why OpenAI is pricing ads so highly, and why some clients will pay, read this: https://www.dbreunig.com/...
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@rustybrick
Barry Schwartz
on x
Whoa, these ChatGPT ads are not cheap
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@jackcarterbenjamin
Jack Benjamin
on bluesky
This is laughable. — OpenAI is reportedly targeting CPMs in the realm of $60 for advertising on ChatGPT. — That pricing is well above Meta's sub-$20 CPM and on par with live NFL broadcasts. — In what world do they think advertisers will pay that much? — www.theinformation…
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@eric_seufert
Eric Seufert
on x
OpenAI's introductory ad pricing is close to what Netflix charged when it launched the ad-supported tier. Worth noting that Netflix saw a surfeit of *demand* at launch. It had to refund committed money to advertisers because it couldn't exhaust their budgets.
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@michaelmiraflor
Michael J. Miraflor
on x
Why are they selling on a CPM basis and not CPC (or other performance KPI)? I don't get it. Did they not read case studies of botched first attempts at ad models? iAds, Netflix, Perplexity etc. Everyone thinks they can command crazy CPMs until they are humbled by the market.
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@mgoldstein.nyc
Mitch Goldstein
on bluesky
I actually guffawed at this. Meta's CPM is not only “sub-$20” but usually closer to like $12 even with targeting layers applied. There is zero proof the ads even work, and I have to imagine they aren't letting advertisers in on the targeting or conversion tracking side of thing…
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@edzitron.com
Ed Zitron
on bluesky
Hahahahahahahahahahahah hahahaha. Hahahahahha. Haaaaa. Good luck with that [embedded post]
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@stocksavvyshay
Shay Boloor
on x
OpenAI is targeting ~$60 CPMs inside ChatGPT which is far above $META typical sub-$20 CPMs. Meta can run lower CPMs because it monetizes attention at massive scale. [image]
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@j_bertho
Jonathan Berthold
on x
$60 CPM for a low-to-medium purchasing intent channel with no proper optimization system in place for conversions is straight up lunacy
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@antoniogm
Antonio García Martínez
on x
@signulll @perplexity_ai You can always get brand dollars to be the first to hit the beaches. It's re-upping those budgets that's hard, particularly without even the ability to measure brand vanity metrics or reach.
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@signulll
@signulll
on x
@antoniogm @perplexity_ai i suspect they have demand to do this. there are companies likely allocating dollars just due to the new medium.
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@antoniogm
Antonio García Martínez
on x
OpenAI kicking off ads with rate-card CPM deals is dumb and will fail, and analogous to @perplexity_ai 's failed experiment in the same. Fidji and her former FB ads crew surely know this. They'd only be launching this way if there were internal pressure to ‘do something’ about …