OpenAI is debating its participation in the Cannes Lions festival, reflecting its ambitions in marketing amidst increasing competition from Google. As Google accelerates its ad capabilities with Gemini, OpenAI must finalize its advertising strategy, hire a suitable ads leader, address data privacy, and prove its commerce viability swiftly. Current discussions involve collaborations with publishers, but OpenAI has yet to engage actively with advertisers.
With OpenAI projected to incur significant losses by 2029, the need for effective revenue streams, particularly advertising, is urgent. ChatGPT, boasting nearly 910 million monthly users, is likely to be the first platform for ad integration. However, OpenAI’s lengthy silence on advertising raises questions about its strategy, especially compared to Google’s proactive engagement. As OpenAI forms partnerships with major retailers, including Walmart and Target, the groundwork for a potential ad ecosystem is being laid. Yet, industry experts warn that prolonged indecision could lead to lost opportunities in this rapidly evolving market.
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