OpenAI expands ChatGPT ads to 31 European markets

OpenAI is extending its ChatGPT advertising pilot to 31 European markets, including Germany, France, Spain, Italy, the Netherlands, Sweden and Poland.

Trishla Ostwal reports for Adweek that the rollout significantly broadens a pilot that had previously operated in the US, Canada, Australia, New Zealand, the UK, Japan, South Korea, Brazil and Mexico.

The expansion comes as OpenAI increases efforts to build revenue beyond subscriptions. Colin Fleming, OpenAI’s enterprise chief marketing officer, says advertising revenue has risen by more than 25% since the start of August. He describes the European launch as a major geographical expansion rather than a change to the audience that can see ads.

According to Fleming, ChatGPT reaches one billion weekly active users. About 20% of them show commercial intent, meaning they use the service for activities such as researching products or services. OpenAI has not announced plans to show ads to paid ChatGPT subscribers above ChatGPT Go.

Building the ad business

OpenAI began testing ads in ChatGPT in February. It launched an ads manager in March and later added conversion measurement, allowing advertisers to track whether an ad led to an action. The company has also integrated AppsFlyer, giving advertisers data on app installs, in app purchases and subscriptions linked to ChatGPT ads.

Advertising remains small compared with OpenAI’s wider business, according to the report. Chief financial officer Sarah Friar reportedly tells investors that the company is approaching a $1 billion annual advertising run rate. Enterprise revenue has overtaken consumer revenue, she says, with the overall business reaching an annual run rate above $40 billion.

Fleming also says more than two million businesses now use OpenAI tools, twice as many as a year earlier. The company is increasing marketing for enterprise customers, knowledge workers and developers, while promoting newer features such as ChatGPT voice mode and image generation.