Amazon pilots ChatGPT Ads through its DSP

Amazon is partnering with OpenAI to let advertisers extend campaigns from Amazon DSP into ChatGPT, giving brands another way to buy into the chatbot’s growing advertising inventory.

Driving the news. ChatGPT Ads inventory will be available through Amazon DSP as a managed service, with Amazon helping advertisers set up and optimize campaigns. Delta Vacations is among a select group of U.S. advertisers participating in the pilot.

The integration is limited to the U.S. at launch.

Why we care. The pilot gives Amazon advertisers a new route into ChatGPT Ads without requiring them to manage campaigns directly through OpenAI. It also connects one of the largest digital advertising platforms with an emerging conversational ad channel.

The details. Advertisers can buy ChatGPT inventory on both a cost-per-click and CPM basis. Amazon is also offering product feed ads that automatically create ad assets using advertisers’ product catalogs.

Ads will appear as text and image units beneath organic ChatGPT responses and will carry sponsored labels.

Zoom in. Buying through Amazon doesn’t mean Amazon decides where an advertiser appears inside ChatGPT.

OpenAI will continue to control ad delivery and placement through its own systems.

That creates a split between the two platforms: Amazon provides the buying and campaign-management layer, while OpenAI controls how those ads are ultimately served within ChatGPT.

Measurement: Advertisers testing the integration will receive aggregated performance data including impressions, clicks, cost per result, CPM and CPC.

Amazon’s shopping and streaming data could also make the integration particularly interesting for advertisers looking to combine its audience insights with ChatGPT’s conversational context.

The big picture. The partnership gives OpenAI access to Amazon’s massive advertiser base as it works to scale ChatGPT Ads.

It could also broaden ChatGPT’s appeal to nonendemic Amazon advertisers — companies that don’t necessarily sell products on Amazon but already use Amazon DSP to reach audiences elsewhere.

What to watch. Whether OpenAI expands Amazon DSP access beyond the initial U.S. pilot and how much demand the partnership generates from advertisers that already use Amazon’s advertising ecosystem.

Bottom line. Amazon is becoming another gateway into ChatGPT Ads, but OpenAI isn’t handing over control of its inventory. Amazon will manage the buying relationship, while OpenAI remains responsible for deciding how and where those ads appear inside ChatGPT.