Science & Tech · AI · 5 hrs ago

Chatbot Ads Spread as Companies Test What Works

Chatbot Ads Spread as Companies Test What Works

Ads are becoming part of chatbot services, as companies look for ways to earn money from AI conversations.

OpenAI says more than 100,000 customers have advertised in ChatGPT since ads launched there in February, and Google has expanded ads in its AI Mode search chatbot to 10 more countries.

Anthropic says it will keep Claude ad-free, while the article notes the company has about $112 billion in investor funding.

Koah Labs, a San Francisco ad-tech startup, says its system brings ads to more than 200 apps, including DeepAI and Liner.

Koah says AI-written ads generate twice as many clicks as ads written entirely by people, and users click about 3 percent of ads in its network.

Chatbots can use conversation context to tailor ads, but advertisers are not yet satisfied with the experience, and some companies face rules limiting what their ads can say.

The industry is still testing how to make ads relevant without making them intrusive or putting brands at risk.

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What people are saying

GoogleCompany statement
find them highly relevant
via Wired
Nic BairdKoah Labs CEO
not only the prompt, or the Google search, but also the response from the AI platform, which brings context from the rest of the conversation thus far.
via Wired