OpenAI has just officially launched a new feature for its advertising platform that will allow advertisers to upload their product feeds directly. In this way, Sam Altman’s company greatly simplifies the creation of large-scale campaigns based on multiple products, bringing it closer to the capabilities that other major advertising platforms, such as those from Google and Meta, have offered for quite some time.
You cannot say we do not keep you up to date on the latest industry developments, even when they have not happened yet 😉 Just under a month ago, we told you about the leaks pointing to the arrival of product feed ads in ChatGPT, and now they have become a reality. At least in beta mode.
Through an email sent to users of OpenAI’s advertising platform, the company explained the rollout of this new feature, which marks a major step in the evolution of its still-nascent advertising business:
“We have launched a new tool for Ads Manager, in beta, that allows retail advertisers to upload product feeds and create ads directly from each item.
Product feeds make it easier to bring your entire catalog into ChatGPT ads, create campaigns at scale, and connect relevant products with users during high-purchase-intent conversations. Ads created from product feeds have also been among the best-performing in our Ads Beta to date. For example, a global DTC (direct-to-consumer) brand doubled its CTR and reduced its CPC by 50% after switching from standard ChatGPT ads to feed ads.”
In fact, OpenAI has already uploaded some documentation related to this new tool to its support site, where it explains the basic mechanics of how it works and who it is designed for. The company recommends this feature for those who want to connect their products with user conversations showing “high purchase intent,” creating large-scale campaigns through a single feed upload.
This concept of “high purchase intent” is particularly relevant. After all, ChatGPT is a place where users “talk” with an AI about almost anything, including shopping.
It is not hard to imagine that many consumer journeys today take place almost entirely (at least until the final stage) within conversational environments such as ChatGPT or Gemini. OpenAI’s product feed ads are designed to operate within those conversations, perhaps when a user asks something like “What running shoes would you recommend for a marathon?”. That is where the seller’s feed comes into play.
Of course, sellers who want to use this new feature will need to meet some basic requirements. The company has already published the specifications that product feeds must meet, but it has placed special emphasis on details such as feeds needing to contain a minimum of 1,000 products and a maximum of 2 million products and the fact that the ad title and description will be pulled directly from the feed. Advertisers will then be able to fine-tune campaign details, such as creating an ad template for the ad group associated with their feed.
Since Sam Altman activated the “red code” at OpenAI, the company has undergone many changes, and most of them point toward the search for profitability, a journey in which its advertising business will carry increasing weight.
And in this process, they have not hesitated to make whatever changes are necessary.
For example, at first its ad campaigns used a CPM model, which was later changed to cost-per-click models. Later, to strengthen its still-fragile advertising structure, it announced the beta launch of its own ads manager, an essential feature for this business area to scale.
We will surely see more developments of this kind before the end of the year.
Image: ChatGPT
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