OpenAI Is Struggling With Their Ads Business - Coaching Moment
Despite hitting $1b in ad sales, OpenAI is struggling to scale its ChatGPT advertising business because marketers lack the robust measurement and conversion tracking tools they are accustomed to on platforms like Google and Meta.
Advertisers are keeping their budgets at experimental levels due to unreliable reporting, data privacy concerns, and difficulty proving a clear return on investment.
Why This Matters
Budget Limitations: Without reliable conversion data and demographic insights, advertisers are hesitant to move beyond small test budgets, limiting OpenAI's ad revenue potential.
Trust and Privacy Concerns: Many brands are reluctant to share the first-party data required for better tracking due to strict legal terms and fears over how OpenAI might use their customer information.
Competitive Disadvantage: The lack of automated buying tools and real-time attribution makes it difficult for ChatGPT to compete with established ad-tech giants for performance-marketing dollars.
How To Use This As A Marketing & Business Leader
Advise for Independent Measurement: Encourage clients to establish their own independent tracking frameworks and KPIs before testing the platform, rather than relying solely on native metrics.
Manage Expectations: Position ChatGPT ads as an experimental, upper-funnel branding play rather than a direct-response channel until attribution tools mature.
Navigate Data Privacy Proactively: Work closely with legal and compliance teams early on to understand OpenAI's data terms and find safe ways to utilise their conversion APIs.
