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OpenAI wants to sell more ads in ChatGPT, but advertisers are struggling with basic tools
Key Points
OpenAI plans to charge for some ChatGPT ads per click instead of just per impression and is exploring action-based campaigns optimized for purchases or app downloads.
Current ad prices of $15 to $25 CPM fall well below the $60 target, and the pilot phase had to be extended because OpenAI couldn't serve enough ads to spend committed budgets.
Advertisers say missing tracking tools, limited targeting options, and poor brand safety controls make ChatGPT hard to justify compared to Meta and Google.
OpenAI is expanding its advertising business in ChatGPT and introducing new pricing models. But early advertisers are running into a lack of tracking tools and limited targeting options.
OpenAI plans to start charging for some ChatGPT ads based on clicks rather than impressions alone. The company is also exploring action-based campaigns where advertisers can optimize for purchases or app downloads, according to The Information. There's no fixed timeline yet, according to an agency representative who spoke with OpenAI staff.
The changes are meant to make ChatGPT more appealing to advertisers. OpenAI has told investors it expects $2.4 billion in ad revenue by 2026 and aims to hit $11 billion by 2027. In a blog post, the company said its pilot program reached over $100 million in annual recurring revenue within six weeks.
The rollout has been rocky, though. The pilot phase for early advertisers was extended past the end of March because OpenAI wasn't serving ads frequently enough to spend the committed budgets. Instead of the targeted $60 CPM, some clients are paying just $15 to $25 per thousand impressions, according to a media buyer.
Measurement and brand safety remain weak spots
One of the biggest issues is data. OpenAI currently only provides advertisers with aggregated metrics like impressions, clicks, and spend. Compared to Meta and Google, detailed tracking tools are missing entirely. According to The Information, Ben Kahan of agency Brainlabs says many clients who have the budget are holding back because they can't get the measurement capabilities they need.
Targeting is also limited. Instead of precise keyword controls, OpenAI gives advertisers only broad topic tags as guidance. Since every ChatGPT response is unique, there's almost no way to control what content an ad appears next to. Kahan notes that the same question can be answered in a thousand different ways, making brand safety hard to guarantee.
OpenAI has since launched a self-service portal for managing campaigns and is working with ad tech company Criteo. Monthly minimum spend now sits between $30,000 and $50,000, down from the earlier upfront commitment of $200,000.