Advertising inside ChatGPT is getting cheaper. But how does its pricing compare to established digital advertising platforms—and what will it take for advertisers to justify the investment?
When ChatGPT first introduced advertising, its reported $60 cost per thousand impressions (CPM) made it one of the most expensive options in digital media. Just nine weeks later, some advertisers were paying as little as $25.
In Digiday's examination of ChatGPT's falling ad prices, reporter Krystal Scanlon turned to Gupta Media's proprietary advertising-cost data to put those numbers in perspective.
At the time, Gupta Media's CPM Tracker showed average advertising costs of $4.82 on Facebook, $7.63 on Instagram, $3.02 on TikTok, and $39.19 on LinkedIn.
The comparison reveals the challenge facing OpenAI. Advertisers are willing to pay premium prices when a platform delivers access to valuable audiences and measurable business results. But unlike established advertising platforms, ChatGPT is still developing the tools advertisers need to evaluate its performance.
As OpenAI expands access to ChatGPT advertising, pricing is only part of the equation. The bigger question is whether the platform can prove that its impressions are worth the premium.
Read the full story in Digiday.