ChatGPT's ads are a lot like San Francisco’s infamous billboards
ChatGPT ads skew heavily toward business software, and there are bright points for the business, according to a new report from the agency Graphite.
A new report from marketing agency Graphite reveals the prominence of business software advertising on ChatGPT. The company has been running ads on its AI service for over six months and has reached a $1 billion annual run rate. However, only less than half of eligible users are currently seeing ads. Highway 101 in San Francisco, infamous for billboards promoting software to other tech firms, serves as a comparison point for ChatGPT's ads.
Graphite found that nearly 20% of ad impressions on ChatGPT were for business software, followed by business and professional services at 8.5%, and developer tools at 4.6%. OpenAI launched ads on its main AI service in February, aiming to generate revenue before its planned IPO next year. The click-through rate for ChatGPT ads more than doubled from late March to early September, indicating improved targeting.
Ethan Smith, Graphite's CEO, expressed optimism about the company's ads business, noting that targeting is expected to improve over time.
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