@tjrobertson52

Ads are coming to ChatGPT. Let's talk about if you as a business should be running ads on ChatGPT and why. I think Google will be the real winner in all of this.

Apparently these ads will only be in the free version of ChatGPT, and they'll show up as clearly labelled sponsored ads below the LLM response. Apparently there's also going to be an $8 a month version that gives you all the benefits of the $20 a month version, but also still shows you ads. The announcement, of course, is wildly unpopular.

Apparently 64% of users say they'll stop using ChatGPT altogether. Of course, most of those users won't stop using ChatGPT, but some of them probably will. I'm sure this is why Sam Altman had said he'll never run ads in ChatGPT.

But those servers don't pay for themselves. ChatGPT has slowly begun inviting advertisers to their ads beta program. I haven't seen the platform myself yet, but let's talk about whether or not it's worth running ads.

Almost every time a platform first launches their ad campaign, the ads are severely underpriced. This is because the platform already has a bunch of inventory, but people are slow to start running ads. They either don't know yet that they can run ads on that platform, or they're waiting to see how it goes for other advertisers.

Now that being said, I don't think I've ever seen an ad Platform as hyped as ChatGPT's ads are, so it's possible this could be an exception, but my guess is early advertisers on ChatGPT are gonna get a very good rate. However, currently I think people are way too focused on ChatGPT ads and not nearly focused enough on Google's AI ads. You might have missed the news articles showing that Google is already experimenting with ads in their AI.

Mode results. And that's because it's not really news. Right?

We all expected Google to run ads in AI Mode, so unlike ChatGPT, they're not gonna have the same P. R problem. But Google also has two other huge advantages over OpenAI.

One is obvious they have 10 to 20 times as much distribution as ChatGPT. The other is that they have a much more sophisticated ad platform. Google has already spent over 20 years figuring out how to do ads.

Now people will point out that Google ads have become overpriced. And it's true, competition and a little bit of greed on Google's part have driven up the price of ads. But it's like that old joke no one goes there anymore, it's too crowded.

Google Ads is still the most effective short term marketing channel for any business that has customers that search specifically for the types of products and services they carry. And these ads in AI. Mode introduce a brand new category of targeting for the first time ever, you'll be able to target people who don't even know to search for the type of product or service you offer.

Now, matching searchers who are in need of your product to your ads is gonna be much more complex than just simple keyword matching. But it's a problem that Google has already been working on for several years. Jesse Bitt's just playing catch up.