Amazon Bolsters OpenAI Ad Business with ChatGPT Partnership
Amazon has partnered with OpenAI to allow its advertisers to run ads in ChatGPT. This move marks a vote of confidence from Amazon in OpenAI's burgeoning ad business, which recently reached a $1 billion annualized revenue run rate.
The partnership allows select brands in the U.S. to extend their campaigns into conversational chat platforms like ChatGPT. According to Sensor Tower data, between April and August, Amazon became the top retail company advertising on ChatGPT. OpenAI's ads system controls all ad delivery decisions, while Amazon sets up and manages ad campaigns.
Ad units will appear as text or images beneath ChatGPT responses and are clearly labeled as sponsored. For example, if a shopper is looking for marathon training tips in ChatGPT, an ad for running shoes sold on Amazon could be shown in results.