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
The Information
Related Coverage
- What do ads on ChatGPT tell us about the AI race? The Irish Times · Hugh Linehan
- With ChatGPT saying yes to ads, why is Google still on the fence? DigiTimes
- OpenAI's CEO said ads were a “last resort” business model. Now ChatGPT is getting ads-and asking brands to pay a lot for them. Tubefilter · James Hale
- Google AI chief Demis Hassabis questions ChatGPT ads, calls out the irony in AGI claims Moneycontrol · Ayush Mukherjee
- Really exciting to see Brian Stempeck and Evertune AI featured in The Information's article on OpenAI's new ads offering. … Mark Engle
- Paid ads in ChatGPT will not look like search or social. That's the real disruption The Drum
Discussion
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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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@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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@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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@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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@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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@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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@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 …
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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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@rustybrick
Barry Schwartz
on x
Whoa, these ChatGPT ads are not cheap
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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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@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…