Overview
- Amazon announced a pilot on Thursday that lets select U.S. brands and buyers using Amazon Ads, including the Amazon DSP, place designated text or image units below ChatGPT responses.
- Delta Vacations is among the first named advertisers testing the integration, which Amazon says will be managed through its ad platform while OpenAI controls ad delivery decisions.
- OpenAI had already been running sponsored placements since February and reported about a $1 billion annualized ad run rate before the Amazon agreement, and the deal gives OpenAI an established sales channel to scale quickly.
- Industry observers warn the partnership may face limits from weak measurement, narrow ad formats and clunky ad technology that could curb advertiser adoption and campaign performance.
- Regulators and transparency advocates are watching closely because the move expands Amazon’s ad distribution during an FTC lawsuit alleging Amazon overcharged advertisers, raising questions about disclosure and targeting practices.