OpenAI is expanding its advertising strategy by introducing visual display ads that will appear alongside images generated by ChatGPT. This move aims to support the company’s free and low-cost subscription tiers while competing with emerging AI rivals.

What Happened

According to TechCrunch, OpenAI is adding visual display ads to its ad product lineup, which will be displayed next to images users request ChatGPT to generate. These ads are scheduled to begin appearing later this month in the United States only, featuring products and services from an initial test group of advertisers. The company notes that the ads will be clearly labeled and will not influence the answers ChatGPT provides.

In addition to the new ad format, OpenAI is expanding its measurement tools and partner ecosystem. This includes click attribution solutions from providers such as AppsFlyer, Triple Whale, Adjust, DV Rockerbox, Northbeam, Branch, Singular, Kochava, Airbridge, and Tenjin, as well as full-funnel measurement partners like Fospha, Measured, and INCRMNTAL. The company has also partnered with Haus, Measured, and WorkMagic to facilitate geo-based experiments for advertisers.

Why It Matters

The introduction of visual ads marks a significant step in OpenAI’s effort to monetize its massive user base, which currently stands at 1.2 billion weekly users. By leveraging visual imagery, the company hopes to appeal to online advertisers seeking more engaging ways to tell their brand stories. This expansion follows the launch of Meta’s Muse, an agentic AI app that has emerged as a growing competitor to leading AI chatbots like ChatGPT.

OpenAI is also working on developing brand suitability evaluation pilots with DoubleVerify (DV) and Integral Ad Science (IAS). These initiatives are designed to help advertisers better understand the ChatGPT ads environment and ensure brand safety. While integrating visual ads could potentially disrupt the user experience, the strategy may also incentivize casual users to upgrade to paid subscriptions to avoid advertisements.

The Bottom Line

OpenAI is actively building a robust ad-supported business model for its free and low-cost plans by integrating visual ads into image generation and expanding its measurement and brand safety partnerships. The U.S. launch later this month represents the first phase of a broader strategy to monetize its global user base amidst increasing competition from rivals like Meta.