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What Target’s ChatGPT ads test says about the retailer’s path forward

The strategy: ​​Target this month will be among the first advertisers to test contextual ads in ChatGPT, according to a company blog post.

Ads from Target and its Roundel retail media network brand partners will be clearly labeled, appear separately from the organic response, and won’t influence the answer itself.

How it will work: OpenAI will serve ads based on keywords in a user’s prompt to ensure relevance. For example, a query like, “What countertop appliances make everyday meals more convenient?” could trigger a clearly labeled ad for an air fryer from a pilot participant displayed alongside the response, not embedded within it.

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