ChatGPT Ads hits $1B annualised as the EU brings it under the Digital Services Act
ChatGPT Ads has reached $1 billion in annualised revenue in under 200 days, with self-service buying now live across Europe, India, the Middle East and North Africa. The European Commission has designated ChatGPT a Very Large Online Search Engine under the Digital Services Act (DSA), based on its 159.1 million declared monthly active users in the EU.
OpenAI announced that their advertising business has achieved this milestone, attributing it to a free tier model that funds a free ChatGPT for over a billion weekly users. Self-service buying capabilities allow any business to purchase ads directly, opening up opportunities for small and medium companies.
The DSA designation comes with an obligation: designated platforms and search engines must maintain a public advertisement repository for a year after an ad runs, including content, payment details, targeting parameters, and reach. While the rule primarily targets online platforms, the announcement hedges on personalisation, suggesting ChatGPT may utilise users’ broader ChatGPT experience depending on country and settings, potentially leading to conversational ads.
However, the scope of this new rule remains unclear. With Ireland’s digital services coordinator overseeing ChatGPT, OpenAI has four months to comply with the DSA designation, and the unique nature of chatbot interactions raises questions about how strictly these regulations will be applied.
By Ana Maria Constantin, an expert in digital marketing, product management, and branding & identity.