ChatGPT - Free Will Entail Ads, But We've Learned to Tune Out
Of the 900 million ChatGPT users, 850 million of us are freeloaders, documents BusinessInsider. The chat bot's parent OpenAI probably knows that if there's a subscription fee slapped on for the basic model (the Plus one already operates on a fee basis) we'll figure out how to go elsewhere.
So, to build revenue OpenAI has come up with the ad strategy. While we're having our prompts responded to there will be digital advertising. Overall, OpenAI has shifted from branding for innovation to sticking to the knitting in terms of financial performance. Recently it halted that amazing video development: Sora.
The question is: How successful will this be?
Recall that during the Super Bowl competitor Anthropic's commercial mocked that strategy. The messaging resonated.
But the more significant variable is this: We have grown accustomed to tune out ads. That's that. Instead of paying for streaming services like Netflix (which just raised its price) I have been with free platform Tubi. Yes, it uses ads for a revenue source. But I never notice them.
Over is the era when we used to rail against advertising. Late Harvard Business School marketing professor Ted Levitt essentially put it this way: Americans love to buy. They hate being marketed to. So there had been lots of eloquent push-back against the ad industry. Yes, had been. Now, it's an ignore.
In addition, if the ads do get on our radar, we can shift to other free AI assistants.
So, advertising on ChatGPT could go down as OpenAI's Folly. Meanwhile, some of those in the know speculate that the enterprise could run out of money. A few days ago respected The Telegraph had lots to say about that.
OpenAI gained rapid name recognition when it was the only game in town. Now the playing field is flooded with competition. A prediction is that some big AI players will go out of business.
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