OpenAI’s introduction of advertising on ChatGPT in the U.S. marks a significant shift from its previous ad-free model, signaling a new era in digital advertising. Media expert Gowthaman Ragothaman predicts this change will redefine brand strategies for discovery and targeting. With an ad-funded model, user engagement becomes crucial, necessitating geography-based ad strategies. Different ads will be tailored for varying markets, which poses operational challenges for OpenAI in terms of ad-serving technology. Concerns about data privacy loom, especially in India, where regulations like the DPDP Act come into play. Industry experts emphasize that ads must be context-aware, clearly labeled, and respect user privacy to succeed in India’s diverse market. The transition from conventional search to conversational advertising transforms user engagement and offers brands opportunities to connect at critical decision-making moments. Despite potential pitfalls, if managed well, this shift could create a powerful new channel for intent-driven marketing, making it a critical battleground for advertisers.
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