OpenAI has recently started showing ads on ChatGPT, and now the company has teamed up with adtech firm Smartly to improve how ads are shown inside the platform. The partnership comes as the company slowly expands ads to users on its free and Go subscription tiers. Instead of traditional static ads, the focus is on making them more useful and interactive. Smartly, known for helping brands adjust campaigns in real time, will now bring that expertise to ChatGPT. The goal is to create ads that feel relevant to what users are already exploring, while still keeping them clearly separate from the main responses and protecting user trust and privacy at all times.
Smartly is led by industry veteran Laura Desmond, who has already worked with major brands like Spotify and Uber. After the recent collaboration it will help advertisers adjust their ChatGPT campaigns based on performance. Early participants include companies from entertainment, retail, and sports sectors, all part of a pilot programme.
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At first, the ads will remain simple and contextual. For example, at the initial times, if someone is researching about smartphones on ChatGPT, then they might see a related retail promotion, while a travel query could trigger a holiday deal. However, over time the ads are expected to be more interactive and conversational.
Desmond pointed to an example used for a UK retailer, where users click an ad and are guided through a chatbot that offers tailored suggestions. ‘The opportunity with conversational advertising is you can do more follow-ups, and you can ask again,’ she said. ‘The experience for people will get way more relevant, way more personal, and hopefully be seen as a much better value exchange.’
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OpenAI has been cautious with its rollout as ads are clearly labelled and kept separate from answers inside the platform. The company has also said that conversations remain private and are not shared with advertisers. Moreover, according to OpenAI, certain sensitive topics will not include ads. Aside from that, someone who is under the age of 18 will not see any ads while researching on ChatGPT.
Analysts estimate that the ad revenue could grow into billions over the next few years. However, the competition from established players like Google and Meta will still remain strong. Desmond also acknowledged that the trust from the consumers will shape how quickly things evolve at OpenAI. She said that ‘we gain confidence about what people are comfortable with.’ She also added that ‘the ads will adapt.’