OpenAI Opens ChatGPT Ad Platform to Israeli Businesses

OpenAI has launched its advertising system for businesses and companies based in Israel, allowing them to purchase and manage ad campaigns directly through the platform. While ads are not yet confirmed to be displayed to users in Israel, this move signifies an expansion of ChatGPT's advertising operations beyond the United States. Israel is now listed among countries where OpenAI's self-serve advertising system is available.

This expansion follows OpenAI's August rollout of advertising purchases in additional European, Middle Eastern, and North African countries, transforming its advertising efforts from a U.S. experiment into a global business. The company began testing ads on ChatGPT in the U.S. in February, later extending to the UK, Mexico, Brazil, Japan, and South Korea. Ads are presented separately from ChatGPT's responses and are clearly marked as sponsored content. OpenAI emphasizes that advertisers cannot influence responses and that conversations are not shared with them.

Currently, ads appear on the free and Go tiers of ChatGPT, with Plus, Pro, business, and enterprise users not expected to see advertisements. OpenAI also offers an ad-free free tier with some usage limitations. Ads are not displayed in every conversation and are restricted on sensitive topics or for users identified as under 18. Advertisements can be contextually relevant to the ongoing conversation, offering sponsored suggestions related to a user's expressed needs, such as hotel or product recommendations.

OpenAI is also introducing sponsored agents, allowing businesses to operate agents within ChatGPT. Users clicking on an ad may engage in a conversation with a business's agent to inquire about products or services without leaving the platform. This could shift campaign measurement, with parts of the sales process occurring within ChatGPT. The company is integrating its advertising with e-commerce and CRM systems, partnering with Shopify and HubSpot to connect user requests for information with businesses seeking to sell products or services.

ChatGPT's advertising business has rapidly become a significant revenue stream for OpenAI, reaching an annualized revenue run rate of $1 billion less than 200 days after its launch, with tens of thousands of advertisers and over a billion weekly active users. This adds a crucial income source alongside subscriptions and model usage fees, vital given OpenAI's substantial infrastructure costs. Initial pricing was around $60 per thousand impressions, but OpenAI has since expanded purchase options, including pay-per-click and self-serve campaign management tools.

For Israeli advertisers, direct access to this new channel is now available. Natural Intelligence, an Israeli company operating comparison sites like Top10.com and BestMoney, has been advertising on ChatGPT since its closed beta phase. The company reported nearly 100 million impressions and a conversion rate approximately 60% of that achieved on Google, indicating potential but also highlighting that established search engines still offer higher performance. The long-term success for OpenAI will depend on its ability to demonstrate measurable results comparable to existing advertising channels.