❯ OpenAI will test visual ads during image generation in ChatGPT this month, starting with free users in the US

Ads while the image rendersOpenAI announced a new visual ad format on October 5: when users generate images in ChatGPT, ads with images will appear on the page. According to BleepingComputer, testing starts later in October in the US with a small initial group of advertisers, for users without paid subscriptions.

Labeled, and separate from answersOpenAI says ads will be clearly labeled, kept separate from the image being created, and will not influence ChatGPT’s responses. Ads can use images to show product inspiration, how a product is used or the experience of a service. The company also says safeguards are designed to keep ads out of emotionally vulnerable, sensitive or otherwise unsuitable conversations.

The ad infrastructure behind itA set of third-party ad technology companies is being connected at the same time: Hightouch, Tealium and LiveRamp for conversion tracking, AppsFlyer, Adjust, Branch and others for attribution, and DoubleVerify and Integral Ad Science for brand suitability. ChatGPT has 1.2 billion weekly users, which is why advertisers want in.

Turning free users into revenueThese ads target users who do not pay, and every image generated consumes compute. Placing ads in the wait for an image is relatively unobtrusive. How large this becomes depends on whether users accept it and whether OpenAI can convince people that ads really do not affect answers.

▮ SIGNALThe chatbot has ended up on the same road as the search engine: gather users with a free product, then sell their attention to advertisers.