OpenAI debuts advertising performance at Cannes: CPC becomes mainstream and closure rate halves, heavily reliant on agency network.

ME AI News, according to Beating's monitoring, at the Cannes Lions International Festival of Creativity, OpenAI disclosed in detail the latest operational performance of its ChatGPT sponsored advertising business. The data shows that the CPC (cost-per-click) bidding model, introduced 10 weeks after the ads went live, has become the mainstream model for the vast majority of ad campaigns. David Dugan, Head of Global Advertising Solutions at OpenAI, said that launching the ads did not lead to any deterioration in user retention or query volume, and that with improved matching accuracy, the ad closeout rates have fallen by more than half compared with the early stages of launch. The company’s advertising business has now expanded from the United States to seven global markets, including Japan and South Korea.

In terms of sales and operations strategy, OpenAI has made it clear that it will heavily rely on the ecosystem of advertising agencies and technology partners such as Omnicom, WPP, Publicis, and Dentsu, while avoiding building a large direct-sales team. Hands-on tests show that when a call-to-action (CTA) is designed as a solution to the user’s initial problem or as a direct benefit, its conversion response rate is far higher than when it simply lists the product name.

In addition, creative experts demonstrated multimodal workflows based on Codex, workspace agents (agents), and image generation models, enabling non-programmers to batch-customize localized marketing images and copy that comply with brand guidelines for dealers within hours to days.

(Source: BlockBeats)