OpenAI's ChatGPT ads reach $1 billion run rate as advertisers seek better measurement
A $1 billion annualized run rate is what OpenAI's advertising business hit this week, according to the company, a threshold reached in roughly six months. OpenAI told AdExchanger the figure reflects actual advertiser spending only, with promotional ad credits handed to early clients excluded from the total. The pace still lags the company's own earlier projections of $2.5 billion in ad revenue this year and $100 billion by 2030; eMarketer puts the 2030 figure closer to $5.41 billion.
Campaigns on the platform still lack competitor benchmarking data, deep conversion tracking and audience suppression tools that buyers rely on across other channels, agency sources told AdExchanger. Lifesight co-founder Rajeev Nair said the platform's current conversion tracking and audience options are "very limited." His team keeps ChatGPT budgets inside test allocations while it models cross-channel lift, a process he estimates takes about six months before dollars move into core media plans. OpenAI has added a conversion API and conversion-optimized campaigns geared to reach, clicks or conversions, and agencies say further measurement tools and integrations with third-party MMM and incrementality platforms will decide how much of that test budget becomes permanent spend.