OpenAI is piloting advertising in ChatGPT, targeting logged-in U.S. users on Free and Go tiers, while Premium users will remain ad-free. This innovation has attracted attention from major advertisers and agencies, signaling potential shifts in digital marketing budgets. Analysts from Wedbush highlight that brands may reallocate funds toward AI-driven advertising, posing risks to platforms like Pinterest and Instacart. Ads, clearly marked as sponsored, will be tailored based on user interactions without compromising privacy. Major firms, including Omnicom and Dentsu, are already participating, demonstrating a trend towards AI-enabled marketing. As brands prioritize AI-targeted discovery, traditional advertising platforms might face reduced engagement and revenue. Wedbush warns that the increased presence of AI in advertising could limit growth for companies reliant on ad revenues, especially Pinterest, which currently holds less than 10% of major advertisers’ budgets. The evolving landscape indicates a challenging future for smaller digital advertising platforms amidst rising AI competition.
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