Amazon has begun piloting a new advertising service that integrates campaigns into ChatGPT, the conversational AI developed by OpenAI. This partnership enables Amazon advertisers to reach users through conversational experiences on ChatGPT, expanding the reach of their digital marketing efforts. The pilot program currently includes a select group of U.S. brands, such as Delta Vacations, which offers airline vacation packages. Ads inventory on ChatGPT will be accessible through Amazon’s demand-side platform (DSP), with Amazon providing managed services to help set up and optimize campaigns.
Amazon views conversational ads as a rapidly growing channel for engaging both new and existing customers. OpenAI launched ChatGPT Ads earlier this year and has quickly scaled the business, recently reaching a $1 billion annualized revenue run rate. By partnering with OpenAI, Amazon gains a foothold in one of the most popular AI platforms, while OpenAI benefits from access to Amazon’s extensive advertising infrastructure, which generated nearly $70 billion in revenue last year.
Ads on ChatGPT will appear as clearly labeled sponsored text and image units beneath organic chatbot responses. OpenAI will control ad delivery decisions through its systems. The ads are available on a cost-per-click and cost-per-mille basis. Additionally, Amazon offers product feed ads that automatically generate creative assets from product catalogs. The pilot is currently limited to the U.S.
Advertisers value Amazon’s rich shopping and streaming data, which can enhance targeting precision. ChatGPT’s advertising approach emphasizes delivering contextually relevant and personalized campaigns. Participants in the pilot will receive aggregated performance metrics such as impressions, clicks, cost per result, CPM, and CPC. This new channel could attract nonendemic advertisers who do not typically sell products on Amazon.
Delta Vacations highlighted the potential for personalized travel planning through this integration, aiming to create more relevant and engaging experiences for travelers. OpenAI’s ad business, while growing rapidly, has faced some criticism and mixed feedback from marketers. Prior retail media partnerships with companies like Target and Albertsons were smaller in scale compared to Amazon’s platform.
The collaboration comes as OpenAI prepares for a potential initial public offering, where advertising revenue may play a significant role. The partnership with Amazon’s DSP was notable, especially since OpenAI had earlier discussions with The Trade Desk, a competitor to Amazon in the ad tech space. This move underscores OpenAI’s strategy to scale its advertising offerings by leveraging established digital advertising platforms.