Amazon pilots ad services in ChatGPT: What marketers need to know
Marketing Dive • • business
Key Points:
- Amazon and OpenAI have partnered to allow Amazon advertisers to extend campaigns into conversational ads on ChatGPT, with Delta Vacations among the initial U.S. pilot brands using this integration.
- ChatGPT Ads inventory will be accessible through Amazon’s demand-side platform (DSP) and offered as a managed service, with ads appearing as text and image units beneath ChatGPT responses, clearly marked as sponsored.
- The partnership leverages Amazon’s extensive shopping and streaming data alongside ChatGPT’s contextual advertising capabilities, aiming to create more personalized and relevant consumer experiences, particularly appealing to nonendemic advertisers.
- OpenAI’s ChatGPT Ads, launched earlier this year, recently hit a $1 billion annualized revenue run rate and is expanding globally, with tens of thousands of advertisers using the platform despite mixed industry feedback on ad performance.
- Amazon’s involvement provides OpenAI access to a significant advertising platform, potentially accelerating adoption ahead of OpenAI’s anticipated IPO, while Amazon benefits from entering the growing conversational advertising channel.
