Ads Have Entered the Chat. Now What?
Ads Have Entered the Chat. Now What?

Ads Have Entered the Chat. Now What?

AI

Brian Kroll

Jan 26


We all saw the news: OpenAI is officially introducing ads to ChatGPT. For digital marketers, this feels like a pivotal moment. A new inventory source on one of the fastest-growing platforms in history. The temptation to be “first to market” is incredibly strong.

But before you rush to move budget into this new space, I’m going to suggest something that might feel counterintuitive: Wait.

While the potential here is massive, my advice to most brands right now is simple. Don’t chase the shiny object just yet. Let the technology mature—and let the inevitable troubleshooting happen—on someone else’s budget.

Why It Pays To Hold Back


In times of digital disruption, panic buying is real. We feel like if we aren’t there on day one, we’re already behind. But history tells us that the best strategy during these shifts isn’t usually reckless experimentation. It’s moving up the funnel and staying top-of-mind with your best customers using the tools we know work.

Nobody really knows how ChatGPT ads are going to function in the wild yet. Given the breakneck speed of development in the AI space, whatever ad product they launch next week will likely look completely different three months from now.

The Logistics Are Still a Mystery


Based on current trade reports, we have limited insight into how this will work. We don’t yet know how inventory will be transacted, but early reports suggest it won’t be self-serve initially, will follow a CPM model, and require a very high minimum spend.  

But once it is eventually self-serve, will there be an auction? If so, what are the mechanics?  Which grains are available for geographic targeting or other refinements?  

Until we have clarity on budget pacing and auction dynamics, allocating funds here is essentially gambling.

Show Me the Metrics


Another thing we have to consider is measurement. From what I’ve read so far, performance metrics are going to be aggregated—likely just impressions and clicks.

There are also technical uncertainties. Will UTM parameters be allowed in click-through URLs, or will privacy protocols strip them out? Will tracking pixels or tags be supported? These are essential questions I would want to know before allocating budget to the platform.

For most marketers, justifying investment is crucial. Unless you’re a massive brand with money to devote to brand awareness experiments, you need robust data to prove ROI. Without the ability to track or model attribution effectively, optimizing your media mix becomes nearly impossible.

The Bottom Line


This is going to be a balancing act for OpenAI. They have to weigh price versus performance for advertisers against the experience of their users. That is a difficult needle to thread.

That is why I advise most brands to wait for more information. Let’s see how this shakes out. Let’s wait for the case studies and the platform updates. Do ChatGPT ads have promise? Absolutely. But right now, it is an unproven medium.

Stick to your strategy, keep your budget efficient, and let the dust settle before you dive in.

Ready to update your digital marketing strategy and build your business?
Our experts are here to help.

Contact Us Today!

Subscribe to our Newsletter

Sign up with your email address to receive news and updates

Subscribe