ChatGPT Ads hits US$1 billion run rate in under 200 days

OpenAI says ChatGPT Ads has surpassed a US$1 billion annualised revenue run rate less than 200 days after launch, as advertiser adoption grows globally.

Tens of thousands of advertisers worldwide are now active on the platform. In Australia and New Zealand, thousands of brands have signed on since ChatGPT Ads launched locally in March.

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Australian brands move into ChatGPT

Local advertisers include AG1, Airwallex, Budget Direct, Kogan, L'Oréal Group, Luxury Escapes, Virgin Australia and Xero.

Small and medium-sized businesses have also become a material share of OpenAI’s advertising business following the launch of its self-service Ads Manager in May.

Andy Sinn, a member of OpenAI’s Australian ads solutions team, said: “Aussie and Kiwi businesses have been quick to recognise the opportunity to connect with people in a way that is relevant, useful and grounded in what they are trying to achieve.”

“Our focus is on helping advertisers deliver genuine value while maintaining the clear separation, privacy protections and trust that people expect from ChatGPT.”

Targeting and measurement tools expand

OpenAI has expanded the advertising tools available to brands as it looks to give marketers more control over campaign performance and targeting.

• Conversion optimisation, alongside existing cost-per-click and cost-per-thousand-impressions options.
• Geographic targeting and custom audiences.
• Expanded measurement through the OpenAI Pixel, Conversions API and third-party integrations.

Mitch Pilar, a member of OpenAI’s Australian ads solutions team, said local advertisers increasingly want to understand whether their advertising is appearing at useful moments for customers.

“As we introduce more sophisticated targeting, optimisation and measurement, we’re giving Australian and New Zealand businesses practical tools to build campaigns around the outcomes that matter to them,” Pilar said.

Brands test ChatGPT for customer discovery

Luxury Escapes head of digital Matt Meisner said the platform had been particularly effective for top-of-funnel engagement.

“We’re encouraged by the early results and look forward to continuing growing the volume of users we’re reaching who are actively researching their next trip with ChatGPT,” Meisner said.

Virgin Australia CMO Libby Minogue said advertising in ChatGPT required brands to consider how people use the platform rather than simply transferring campaigns from other channels.

“Advertising in ChatGPT isn’t about taking what we do on other platforms and simply putting it somewhere new. It’s about understanding how people are using ChatGPT and finding meaningful ways for Virgin Australia to be relevant in those moments,” Minogue said.

“Our ambition is to build a relationship with people in this environment that earns our place in the conversation.”

ChatGPT Ads expands beyond Australia

OpenAI said ChatGPT Ads is now expanding across more than 40 countries. Eligible Australian and New Zealand advertisers can also use the platform to extend campaigns into additional international markets.

Ads are limited to people using ChatGPT’s Free and Go plans, while Plus, Pro and Enterprise subscriptions remain ad-free.

OpenAI said advertisers cannot access users’ conversations and the company does not sell customer data. Ads are labelled and shown separately from ChatGPT responses, while users can control ad personalisation.

Businesses can access the advertising platform through OpenAI Ads Manager.