ChatGPT launches advertising in Brazil and can use conversations to target ads

The technology company activated, by default, the use of conversation history with the chatbot to show more relevant content (see below how to turn it off).

According to an instruction page for advertisers, the display of advertising pieces combines three pillars: contextual analysis of the command sent to ChatGPT at that moment, advertiser parameters and profile definition based on the user's history. If chat tracking is deactivated, the segmentation carried out by OpenAI only considers the immediate command and the contractor's instructions.

In practice, executives from the advertising market interviewed by the report assess that the product offers a new form of segmentation in relation to the market standard - defining the target audience by demographic profiles and keywords. "People even use ChatGPT for therapy, they leave their deepest secrets there", says Daniel Alencar, CEO and founder of the brand creation platform Pupila.

OpenAI states that it does not display ads in personal, health, relationship or emotional support conversations. The display is restricted to commands which, according to the company, represent around 20% of the total search volume.

All profiling and segmentation control is carried out by the company itself, which says it does not share conversations, memories and personal information with companies. "Advertisers only receive aggregated, non-identifying information about the performance of their ads, such as total views or clicks."

For companies, according to Alencar, the raw data doesn't matter, what's worth money is the intelligence - the analysis and segmentation carried out by OpenAI at an unprecedented level. When advertising on a website, for example, the main page has a larger audience, but less aligned with the product. The sports section has a much more defined outline. "ChatGPT even knows that the person was betrayed by their girlfriend," he stated.

Meta and Google use AI-based targeting tools, but they are anchored primarily on keywords and browsing history rather than direct conversation content.

"The focus of digital advertising must migrate from tracking behavior to understanding context and intent", says the vice president of media at Publicis Brasil, Ana Sanchez. For brands, this creates opportunities for connection at decisive moments in the consumer journey, according to the executive.

"It is still an early-stage channel with limited volume, therefore complementary to the traditional search strategy," he said.

Despite having a state-of-the-art distribution machine, the ChatGPT developer starts with caution when delivering ads - the pieces have a short title of up to 50 characters and a description of one hundred characters without a graphic element used as a sales hook, called a call to action in the jargon.

The campaigns, for now, are focused on attracting clicks. In the future, OpenAI customers will be able to choose between visibility and conversion of sales or subscriptions - as is already possible, for example, at Google.

Campaigns on ChatGPT are charged based on the number of clicks generated, and the contractor sets ceilings for how much they pay per person attracted and per day. It is still possible to add contextual tips. An example would be "pianists who want to play real blues, but feel the sound is blocked" in an advertisement for the sale of musical instruments - these are descriptions that companies usually raise in qualitative research about their customers.

Some of the main agencies and partners in the Brazilian market, including BETC Havas, Monks, Omnicom, Publicis and WPP, are participating in the pilot phase of ChatGPT ads in the country.

Smaller businesses can also advertise on the platform by accessing ChatGPT Ads. “They will be able to participate in a new advertising channel built around conversations, context and moments of decision,” says OpenAI in the statement.

For the professor at ESPM (Escola Superior de Propaganda e Marketing) and CEO of Polaris Group, Fernando Moulin, ChatGPT will occupy an important space in the national advertising market thanks to its "deeply relevant" audience and navigation.

"All advertisers, without exception, must look at this, otherwise they will lose space to the competitor who will carry out this advertising on the OpenAI platform", stated Moulin.

The OpenAI platform has already been tested in other countries, such as the United States, Canada, Australia, New Zealand, United Kingdom, Japan and South Korea. It arrives in a digital advertising market that is still expanding, as recent reports from Google and Meta show, but also populated by new competitors. TikTok Shop launched a new video ad format last year, while household appliances such as TVs and refrigerators received their own ad platforms.

Brazil is among OpenAI's three largest markets, in terms of number of active users, alongside India and the United States.

HOW TO DISABLE USE OF CHAT HISTORY

ChatGPT users can prevent the use of old conversations in ad targeting, which OpenAI has left on by default.

To do this, they need:

1. Click on the profile icon in the bottom left corner2. Access settings3. Go to the "Data Control" section4. Select "Ad Control" at the bottom of the list5. Prohibit the personalization of ads in general, using the history of advertising pieces, the most recurring themes and conversation history6. Prohibit access only to old conversations7. The company also offers the option of subscribing to a more expensive plan, costing at least R$99.90 per month, to stop advertising being displayed.