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Dive Brief:
Amazon advertisers will be able to extend their campaigns into conversational experiences on ChatGPT as part of a new partnership between the e-commerce giant and the chatbot’s developer OpenAI, according to news shared with Marketing Dive.
Delta Vacations, the airline’s vacation packages provider, is among a select group of U.S. brands piloting the integration. ChatGPT Ads inventory will be available through Amazon’s demand-side platform, an Amazon spokesperson said over email.
Amazon sees conversational ads as one of the fastest-growing channels for brands to engage new and existing customers. OpenAI has quickly scaled ChatGPT’s ads business, which launched earlier this year and recently hit an important revenue milestone.
Dive Insight:
The OpenAI tie-up provides Amazon a bridge into one of the most popular AI programs — a channel that is increasingly intersecting with the world of advertising and informing more consumer decision-making. For OpenAI, the pact may open a floodgate of new entrants to its ads business at a critical moment. Amazon operates the third-largest digital advertising platform and neared $70 billion in ads revenue last year.
ChatGPT Ads will be bought via Amazon DSP and are offered as a managed service, meaning Amazon’s team will help set up and optimize campaigns. Inventory will be available on both a cost-per-click and cost-per-mille, or cost per thousand impressions, basis. The pilot is limited to the U.S. at launch.
OpenAI will control all ad delivery decisions through its own systems, an Amazon spokesperson said. The ads themselves will surface as text and image units beneath organic ChatGPT responses with clearly marked sponsored labels, aligning with how OpenAI has served ads to date. ChatGPT currently runs ads on its free model and cheaper Go subscription tier. In addition, Amazon is offering product feed ads that automatically generate assets based on product catalogues.
Advertisers value Amazon for its troves of shopping and streaming data that can be used to improve marketing precision. ChatGPT for its part has pitched its advertising as a way to realize more contextually rich and relevant campaigns. Those testing the ChatGPT Ads integration will receive some aggregated performance data related to impressions, clicks, cost per result, CPM and CPC metrics. The concept could be appealing to nonendemic advertisers, or advertisers that wouldn’t typically sell goods on Amazon.
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