The news: OpenAI has launched its first ads manager to refine its ad offerings ahead of a highly anticipated IPO, Digiday reports. The company simultaneously reduced the minimum cost of participation in its ads pilot to $50,000, down significantly from the previous $200,000 minimum, according to an exec with clients in the pilot.

The layout of OpenAI’s ads manager tool is described as similar to Google Ads and is currently accessible to a small number of advertisers.

Why it matters: OpenAI projects $2.5 billion in ad revenues by the end of this year and $100 billion by 2030. But this bold estimate initially came as advertisers grappled with two notable limitations:

• OpenAI did not offer marketers a simple, automated way to purchase ad space;
• The company did not provide enough information on how ads perform beyond how often users click or view them, complicating measurement.

An ads manager with capabilities similar to Google’s is key to combatting these barriers. Advertisers can now track campaign performance in real time, allowing them to optimize for impressions and clicks without depending on OpenAI or an agency intermediary.

Without a mature ads manager in place, OpenAI was much less likely to meet its ambitious revenue targets. If the tool scales successfully, it could position OpenAI as a more established advertising business, with self-serve capabilities comparable to Meta, Google, and Amazon.

Lower participation costs also reduce the barrier to entry for advertisers interested in AI chatbot ads but unable to justify the expense. In turn, ChatGPT is likely to attract greater advertiser interest, improving its odds of meeting revenue goals.

Other moves, like a partnership with Criteo to flesh out its adtech stack, are helping legitimize OpenAI’s nascent ads business.

Implications for marketers: An ads manager combined with lower costs makes ChatGPT ads a more compelling prospect for advertisers. That could encourage more brands to test the channel earlier, before competition and pricing intensify. For brands with room to experiment, the current moment may be a good chance to learn the platform before it becomes a must-buy.

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