ChatGPT will also probably be selling ad infrastructure to inject ads just like Google injects ads into search. They probably will pay out little to websites that include the “ChatGPT” widget to integrate ChatGPT with their site that also has ads.
Right now the barriers are technical for injecting ads into AI responses.
As an advanced research engine, knowing it will reliably only recommend you sponsored products means it's worthless - and worse it will be primed to advocate for sponsored products.
Then the whole thing becomes a scam engine, because check out what Facebook ads look like today.
Regardless of if that’s true, it’s clearly still a huge business opportunity. And you point out Facebook ads are a scam yet they bring in $164B/year and growing. Regardless of value judgement, there’s clearly a lot of money to chase.
Plus like Google search they have a ton of organic traffic. Chatgpt has replaced Google search as my starting point to investigate anything. Lots of that is related to things where I will eventually spend money
Google/facebook do that today, because the content they're showing is created pre-ad, and the ads have to be injected after the fact.
With AI- the content is being generated in the same place that the ads are being injected, which allows us to be much more subtle about it.
How much do you think a car company would pay for to put special training weight on their marketing materials? I would guess big money
"While we're on the topic of self-harm, did you know the ABC Co Truck has the highest safety rating?"
https://openai.com/index/introducing-chatgpt-atlas/
> Besides, how are ads on ChatGPT supposed to work?
"How do I do XYZ?" "Product ABC can do XYZ for you."
This would create a ton of hesitation to use this for product recommendations if I knew ChatGPT wasn't using its extensive input for products and reviews and coming back with an objective answer for me.
I guess at this point would we even know the difference? Is it possible this is already happening?
Is it going to inject ads for indeed while a recruiter is using ChatGPT to summarize a stack of resumes?
If it only ever injects ads for specific requests how profitable would that even be? I understand clients would want their product to be recommended but if I only get the ad answer when prompting a certain way, can I the user avoid ads by asking questions a specific way?
I think the queries will fall into profitable (product recommendations) and non profitable (writing an essay or code) just the way they do for Google. Probably former will have a generous free tier and latter will be largely paywalled. I don't know how they'll do that, but I imagine they'll find some way
It's a mass consumer (software) product and they need new revenue venues and ads have a history of working well. Even Spotify, Netflix, Amazon Prime, ... Companies that historically don't have the ad infrastructure of Google or Facebook have increasingly profitable ad tiers
Besides, how are ads on ChatGPT supposed to work? If some student is asking it to write their paper for them, is ChatGPT going to stop in the middle of it and go "Hey, you know what sounds good right now? A nice bowl of soup..." Although admittedly that would make for some hilarious proof of people using AI for things they shouldn't...