More ads are coming to ChatGPT as Amazon signs new OpenAI deal

Amazon and OpenAI have joined forces to expand advertising opportunities within ChatGPT for U.S. brands. This partnership allows brands to purchase ads directly through Amazon's Cost Per Click and Cost Per Thousand Impressions options. Initially launched as a pilot program in the U.S., the new arrangement enables brands already utilizing Amazon's platform to access ChatGPT ads more easily.

Conversational advertising is identified as one of the fastest-growing opportunities for brands to connect with consumers who are spending more time online. Compared to other advertising channels, this option remains relatively untapped. Through this collaboration, Amazon aims to facilitate the setup and optimization of ad campaigns without controlling which conversations receive ads. Instead, Amazon acts as an intermediary, negotiating ad spaces with OpenAI.

Both text and image ads can be displayed beneath ChatGPT's responses, with a clear distinction made through a sponsored ad label to differentiate between organic and advertised content. Amazon offers two payment types for these ads – cost per click and cost per thousand impressions.

Through this partnership, OpenAI gains access to a vast pool of established advertisers already operating on Amazon's platform. With Amazon being the third-largest digital advertising business, boasting an annual advertising revenue of approximately $70 billion, even a small share of this market could significantly benefit OpenAI.