OpenAI is offering $500 ad credits to new advertisers and has streamlined campaign creation to under 60 seconds, targeting a slice of the $1T marketer spend. The move comes as the company seeks a path to profitability amid growing investor interest in AI.
TL;DR
- OpenAI introduces a redesigned onboarding experience for advertisers, offering $500 ad credits to new users.
- The new interface allows advertisers to create campaigns in under 60 seconds, with AI-generated ad creative and copy.
- OpenAI aims to capture a portion of the $1T marketer spend, highlighting ChatGPT's role in consolidating user journeys.
What happened
OpenAI has launched a redesigned campaign onboarding experience for advertisers, detailed in a recent webinar. The new interface aims to streamline campaign creation, allowing advertisers to construct a campaign in under 60 seconds. Advertisers input their website URL, and OpenAI's model analyzes the business's objectives, product lineup, and target customer base to suggest suitable user journeys on ChatGPT. The model then generates an AI-powered ad, including creative and copy, which advertisers can edit. Final details such as campaign location, bidding strategy, and billing information are then collected to complete the setup. Advertisers can also build campaigns using an agent in the ChatGPT Ads Manager plug-in within ChatGPT. The new interface is set to roll out over the next few weeks.
OpenAI is offering $500 in matching ad credits for new advertisers who spend $500 on ads. This incentive is part of an aggressive push to court advertisers and capture a portion of the $1T marketer spend, according to Emarketer. The company has seen 25% growth in daily ad revenue since the beginning of August and is expanding its ad product internationally, with ChatGPT ads now running in dozens of markets, including Brazil, Japan, South Korea, Mexico, and the UK.
Why it matters
This move is crucial for OpenAI as it seeks a path to profitability. The company recently reported an 18% quarter-over-quarter revenue growth but also saw increased losses, posing challenges for the business. By streamlining the onboarding process and offering ad credits, OpenAI aims to persuade marketers to direct some of their spend to the platform. The company is also targeting US metros with its own ads promoting ChatGPT, growing its ad share impressions in cities like Seattle and Boston. However, marketers have expressed a need for additional campaign controls and measurement options on the channel.
Key facts
- OpenAI offers $500 in matching ad credits for new advertisers who spend $500 on ads.
- The redesigned onboarding experience allows advertisers to create campaigns in under 60 seconds.
- OpenAI's model generates AI-powered ad creative and copy based on the advertiser's business objectives and target customer base.
- The new interface is set to roll out over the next few weeks.
- OpenAI has seen 25% growth in daily ad revenue since the beginning of August.
- ChatGPT ads are now running in dozens of markets, including Brazil, Japan, South Korea, Mexico, and the UK.
- Marketers are on track to spend more than $1T in 2026, according to Emarketer.
Context
OpenAI's push to streamline ad campaign creation and offer incentives comes at a time when the company is looking to go public amid considerable interest in AI from investors. The company's recent revenue growth and increased losses highlight the need for new strategies to attract advertisers and drive profitability. By consolidating user journeys and offering a unique advertising opportunity, OpenAI aims to capture a significant share of the marketer spend. However, the company must also address marketers' needs for additional campaign controls and measurement options to fully realize this potential.
