Amazon Opens ChatGPT Ad Inventory to Its Advertisers in OpenAI Partnership
Amazon will let brands that advertise on its retail platform buy ads inside ChatGPT under a partnership with OpenAI, starting with select U.S. brands. OpenAI's ad business has reached a $1 billion annualized revenue run rate.
The program begins with select brands in the United States. In a blog post, Amazon said conversational ad formats such as those appearing in AI chatbots are the "fastest growing engagement opportunity" for brands trying to reach new and existing customers. Chris Conetta, director of omnichannel supply at Amazon's demand-side advertising platform, said advertisers "can now extend their campaigns further into where their customers are actively spending time in conversational chat platforms."
Amazon sets up and manages the campaigns, while OpenAI's advertising system controls all ad delivery decisions, according to an Amazon spokesperson. The ad units appear as text or images beneath ChatGPT responses.
According to CNBC, the arrangement is a vote of confidence from Amazon in OpenAI's advertising business, which recently reached a $1 billion annualized revenue run rate. OpenAI began selling sponsored placements in ChatGPT in the United States in February, starting with retailers including Best Buy and Williams-Sonoma. OpenAI said in February that ChatGPT had reached 900 million weekly active users.
Amazon has heavily restricted access to its webstore from artificial intelligence platforms including ChatGPT, Anthropic's Claude and Google's Gemini, while investing in its own AI shopping tools. In recent months, however, it began quietly buying ads on ChatGPT. Data from market intelligence firm Sensor Tower showed that Amazon was the top retail company advertising on the platform between April and August.
The partnership gives OpenAI's advertising system access to demand from Amazon's advertiser base, while Amazon, led by chief executive Andy Jassy, gains a placement on a platform it had previously limited.