ChatGPT Launches Advertising in Israel, Expanding Reach

OpenAI has officially launched its advertising system within ChatGPT for users in Israel, marking a significant expansion of its monetization strategy. Israeli users have begun receiving notifications about updated privacy policies that include the appearance of ads on the free tier of the service. These advertisements will be displayed separately from ChatGPT's responses and will be contextually relevant to the ongoing conversation.

The advertising system operates differently from traditional search engines. Instead of relying on precise keywords, advertisers provide general "context hints" to indicate the types of conversations they wish to appear in. ChatGPT's algorithm then matches these hints with user conversations and history to determine ad relevance, operating on a bidding model. Advertisers do not see user conversation content or identifying details, only general performance metrics like impressions and clicks.

OpenAI emphasizes a strict separation between its AI model and the advertising system, ensuring ads do not influence the AI's generated responses. Ads will appear in a distinct, labeled "Sponsored" box below the organic answer. Personalization is based solely on in-platform data, such as conversation context and previous ad clicks, without sharing external information. Safeguards include options for users to disable personalization, review ad relevance, and restrictions on ads for users under 18, sensitive topics like health and politics, or when a conversation indicates distress.

This rollout follows a successful pilot program initiated in the US in early 2026, with subsequent expansions to other countries. The advertising platform has reportedly achieved an annual revenue run rate exceeding $1 billion within six months of its initial launch. Israeli companies, including Natural Intelligence, were early participants in the beta phase, with Natural Intelligence reporting strong conversion rates comparable to Google. Company representatives view conversational advertising as a new layer in the consumer journey, offering early-stage opportunities for Israeli advertisers.