OpenAI to Launch Ads Inside ChatGPT in Japan
Ad delivery to start in Japan
OpenAI will soon begin serving ads in Japan. It will display ads likely to match user interests during conversations in the generative AI service ChatGPT. As generative AI increasingly takes on the role of search, OpenAI is also boosting its presence in advertising.
Display conditions and pricing
The intermediary work with advertisers will be handled by three companies: Dentsu Digital, Hakuhodo DY ONE under Hakuhodo DY Holdings, and CyberAgent. The ads, in image and text form, will be shown during conversations on the free service and the low-priced 'Go' plan, and clicking them will take users to the advertiser's site. According to people familiar with the matter, ad rates in Japan will be around 5,000 yen per 1,000 impressions.
AI chooses where ads appear
Because AI selects ads based on past conversations and topics, advertisers cannot specify when their ads will appear. The company plans not to infer from information touching on users' privacy, such as health, and will also not display political content or content subject to national regulation. This means ad design must be developed with AI's judgment in mind.
Early rollout and rival moves
OpenAI trialed ads in some plans in the U.S. in February. Retail giant Target, design software maker Adobe and Mazda have said they will join the test. Annualized ad revenue from the first six weeks of the trial topped $100 million, or about 16 billion yen.
The service is now also available in the U.K., Australia, New Zealand and Canada. In May, OpenAI said it would expand the trial to Japan and South Korea. Google plans to soon begin placing ads in its conversational search 'AI Mode,' and Amazon.com has also introduced ad functions in its AI chat tool for product searches in the U.S.
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