Three Key Factors to Evaluate Before Investing in AI Chat App Advertising

Conversational marketing is rapidly evolving, with platforms like Perplexity and OpenAI’s ChatGPT attracting significant interest from marketers. While these AI-driven chat apps offer promising features, such as context-aware recommendations through formats like Perplexity’s ‘Sponsored Question,’ they still face challenges in demonstrating tangible outcomes like sales conversions. Key issues include the limitations of connected identity, which hampers the ability to create personalized user experiences and measure campaign performance accurately. Many existing chat apps rely on temporary session data, making it difficult to establish consistent user profiles or provide clear attribution for marketing efforts. In contrast, established publishers and retailers benefit from first-party data and robust customer relationships, allowing for better targeting and enhanced user experience. For AI chat advertising to succeed, it must evolve beyond novelty to achieve connected identity, seamless integration, and transparent measurement, ensuring meaningful engagement and results for brands.

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