Behind the Numbers: an EMARKETER Podcast

Episode: ChatGPT With a Side of Ads: Will AI Chatbots Ruin—or Reinvent—Search Advertising?
Date: February 6, 2026
Host: Marcus (A)
Guests: Marissa Jones (Analyst, B) and Nate Elliot (Principal AI Analyst, C)

Episode Overview

This episode dives deep into OpenAI's decision to introduce ads within ChatGPT, exploring what this move means for the company, users, and the digital advertising landscape at large. The discussion covers the need for monetization in generative AI, the likely effectiveness (and pitfalls) of chatbot ads compared to traditional formats, user and ethical considerations, new ad formats on the horizon, and practical guidance for marketers navigating these changes.

Key Discussion Points and Insights

1. Why Ads in ChatGPT, and Why Now?

• Massive Operating Costs:
  Marissa’s main takeaway is that ad revenue is necessary for OpenAI to remain viable.

  "ChatGPT has been struggling for quite some time with profitability. It's very far from achieving that. And this is just to me, obviously the next step in becoming profitable."
  (Marissa, 04:10)

• Burn Rate Context:
  OpenAI is valued at half a trillion dollars, but faces enormous ongoing costs—reportedly with $1.4 trillion in procurement commitments toward AI chips and energy.
  Only about 5% of ChatGPT’s user base of 800 million+ pay for a subscription.

  "They need money and quite quickly, Nate, it appears."
  (Marcus, 04:49)

• Inevitability of Ads:
  Even though Sam Altman (OpenAI CEO) vocally disliked the idea of ads in AI, the move was seen as unavoidable.

  "This was always what was going to happen … there's no end in sight to the red ink over there. So this was always the only option for them."
  (Nate, 05:26)

2. Are Users Likely to Flee Because of Ads?

• Not in Meaningful Numbers:
  Despite some anticipated resistance, analysts agree that significant user flight is unlikely. Many competing platforms will soon (or already) show ads too.

  "I don't think it will. Not in any meaningful number. … Ads are already elsewhere as well. … Google introduced ads into AI Overview about a year and a half ago."
  (Nate, 06:33)

  "We also have to consider that users are very good at tuning out ads entirely. For a lot of users, this might just be something that they notice once and then tune out for the rest of their experience."
  (Marissa, 08:30)

3. How Effective Are Chatbot Ads?

• Early Microsoft Copilot Data Looks Strong:
  Citing internal Microsoft data, Marissa says:

  "153% lift in click-through rates and a 54% improvement in user experience actually from running Copilot ads compared to traditional search."
  (Marissa, 09:25)

• Format Still Evolving:
  The ultimate effectiveness will depend on how naturally ads are woven into the chat experience, with much experimentation expected.

  "The format is still very nascent … it might require a test and learn approach."
  (Marissa, 09:25)

4. Future Ad Formats and Interaction Possibilities

• Beyond just ‘search-like’ ads:
  Nate outlines a broad range of potential ad formats, from simple paid listings to multimedia showroom ads and branded chatbots.

  "There are limitless possibilities for what they could do with advertising in this space … Microsoft in its three years of running ads and Copilot have tried out, I think, three or four different ad formats … showroom ads ... comparison ads ... branded chatbots …"
  (Nate, 11:06)

• Key Factors for Success:
  Platforms must balance return for advertisers, value to users, and the least intrusive ad experience.

  “[OpenAI will] try a bunch of different formats … to figure out what's going to be most effective in terms of that triangulation of what makes them the most money from the most advertisers, what delivers the most value to the advertisers, and what's most effective, or at least, least offensive to their consumers and their user base.”
  (Nate, 11:06)

5. Ad Pricing and Measurement Challenges

• High Initial Prices:
  OpenAI is reportedly quoting a rate card at $60 CPM (per thousand impressions), which is far above market average.

  "Apparently the rate card they're quoting right now is $60 per thousand, which is very, very high … they think they can get that amount of money … But to make that make sense … you need to help brands measure it. And from what we're hearing, the measurement capabilities that they're launching this trial with are exceptionally rudimentary."
  (Nate, 14:42)

• Comparisons to Netflix’s Ad Journey:
  Like Netflix, which launched at a high price point but had to come down to reality, OpenAI may face pricing pressures.

6. Ethical & Privacy Concerns of Conversational Ads

• Heightened Sensitivity:
  Critics worry about the risks of highly personal data being used to shape ad messages.

  "There's a lot at stake when that tool tries to exploit users trust to hawk advertisers' goods."
  (Referenced by Marcus, 16:22, quoting Miranda Bogan)

• Not Really New Territory:
  Nate makes the case that search engines and social media already handle equally sensitive queries/information, albeit with some (imperfect) safeguards.

  "Sure, people type sensitive questions and content into AI models, but guess what, you've been googling stuff every bit as sensitive for probably decades now ... All of these companies have incredible amounts of very sensitive information about us ... this is just the latest technology … that have information about us that we wouldn't want to tattoo on our foreheads."
  (Nate, 17:16)

• Special Cases for Companions & Minors:
  Marissa notes that AI companions can have “disproportionate weight” in emotionally charged situations, especially for minors. She acknowledges OpenAI’s commitment not to serve ads to under-18s as an important safeguard.

  "A lot of AI companion use happens among minors ... So I do think that is an important safeguard that could help them avoid some of these problems they would otherwise maybe be facing."
  (Marissa, 19:19)

• Potential for Manipulation:
  Marcus sums this up:

  "Emotionally adept AI can strengthen engagement and foster brand loyalty on the good side of things, but missteps could lead to perceptions of manipulation."
  (Marcus, 20:24)

7. Implications and Strategy for Marketers

• Approach with Interest—but Caution:
  The panel recommends marketers watch the space, but not over-invest until the platforms prove value and efficacy at reasonable cost.

  "Approach these with interest, but approach them with caution. Going too far into investment, especially with the prices ChatGPT is charging, especially with them not having any proven results yet—it's risky."
  (Marissa, 21:10)

• Learn from More Mature Platforms:
  Nate recommends experimenting with Microsoft’s Copilot, which has more established ad infrastructure and data reporting.

  "I think marketers should respond to the launch of ads in ChatGPT by buying ads in Copilot ... They have established teams and technologies, they've tried different formats, they have experience. The prices aren't ridiculous."
  (Nate, 22:55)

• Let Search Marketers Drive Testing:
  Marketers are advised to give experienced paid search teams latitude to experiment and optimize—AI ad placements, as with search, will require constant measurement and adjustment to find value.

  "[Give] them the keys to AI advertising and say spend as much as you want on these platforms … the thing that good search marketers do so well is they measure and they optimize and they update ..."
  (Nate, 22:55)

• Realistic Timelines:
  The panel suggests ad ROI on ChatGPT may be weak for the foreseeable future—possibly years, similar to Facebook’s slow ad ramp-up. Marketers should be prepared for a lengthy “trial and error” period.

Notable Quotes & Memorable Moments

• On inevitability and internal contradiction:

  "Sam Altman himself has said that he hates ads, calls ads in AI uniquely unsettling, and once referred to ads in ChatGPT as a, quote, last resort. And yet it was always inevitable ..."
  (Nate, 05:26)

• On the new future of ads in chat:

  "It could be back and forth conversations with a branded chatbot. ... showroom ads ... expand into almost full screen multimedia experiences ... There are a lot of different ways this could go."
  (Nate, 11:06)

• On the need for rapid experimentation:

  "OpenAI is going to need to take some time to figure this out, which is unfortunate for them because ... they are burning money like there's no tomorrow and they need to ramp this up as quickly as humanly possible."
  (Nate, 11:06)

• On ad targeting and privacy:

  "This is just the latest technology, the latest set of technologies that have information about us that we wouldn't want to tattoo on our foreheads."
  (Nate, 17:16)

• On ethical risk:

  "Emotionally adept AI can strengthen engagement and foster brand loyalty on the good side of things, but missteps could lead to perceptions of manipulation."
  (Marcus, 20:24)

Timestamps for Key Segments

• [04:10] – Marissa’s take on why ads are now necessary for ChatGPT.
• [06:33] – Nate on whether users will flee because of ads.
• [09:25] – Data on Copilot ad uplift in engagement and UX.
• [11:06] – Exploration of new ad formats for chat interfaces and their impact.
• [14:42] – Ad pricing, measurement, and brand value discussion.
• [16:22] – Ethical concerns around sensitive user data and ad personalization.
• [21:10] – Marissa’s marketing recommendations.
• [22:55] – Nate’s strategic advice to marketers and comparison to Copilot.

Final Thoughts

This episode offers a grounded, skeptical, yet thorough look at the dawn of conversational advertising in AI chatbots. While the move to ads in ChatGPT is seen as both inevitable and necessary, the road ahead is likely to be bumpy for both OpenAI and marketers seeking return on investment. Panelists encourage a cautious, analytics-driven approach while keeping options open on more mature platforms as the space rapidly evolves.