ChatGPT ads face conversion challenges as OpenAI chases ad revenue goals
· 58m ago · Originally reported by Digiday
Digiday reports that OpenAI's advertising business, now running ads for roughly six thousand brands, is struggling to demonstrate conversions. The outlet notes that OpenAI's ambitious ad revenue targets hinge on advertiser demand, measurement and monetisation.
Why it matters
If ads in ChatGPT can't prove they drive purchases, advertisers may hesitate to spend, which would slow OpenAI's push to become a major ad player and reshape how AI chat platforms are monetised.
Explain it like I’m new here
A new store put up ads everywhere, but can't tell if anyone actually bought anything — so shoppers' parents (advertisers) aren't sure it's worth paying for.
Terms in this story
Conversion
A conversion is a valuable action that an advertiser wants people to take after seeing or clicking an ad, such as a purchase, sign-up, app install, call or form submission.
Advertiser
An advertiser is the company, organisation or person that pays to place ads in order to sell products, build a brand, recruit, or spread a message.
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