OpenAI made its Cannes Lions debut this week, pitching ChatGPT ads to the world’s top marketers. The reception was cool at best.

Anthropic mocked the move in a Super Bowl ad earlier this year, portraying chatbot advertising as clunky and intrusive. OpenAI pressed on regardless, ahead of a planned IPO.

ChatGPT Ads: A Big Bet, A Skeptical Room

David Dugan, OpenAI’s global head of ads and a former Meta vice president, told reporters the company is “totally committed” to building advertising into a major revenue stream. He said roughly 20% of ChatGPT queries carry direct commercial intent, with travel, retail, health, beauty, and financial services performing best so far.

OpenAI has told investors it could grow advertising to a $100 billion business by 2030. That figure is roughly half of Meta’s current annual ad revenue. Senior advertising executives at Cannes pushed back. Several told the Financial Times that OpenAI needs more sophisticated targeting and measurement tools before it can realistically challenge Google’s grip on search advertising.

Users and Staff Pushed Back First

The resistance at Cannes mirrors a sharper reaction that erupted when OpenAI first rolled out ads in February. Consumers resisted early, and OpenAI faced a backlash late last year when it tested app suggestions that looked like unwanted promotions. Paying subscribers were particularly hostile, arguing that monthly fees should buy an ad-free experience.

OpenAI researcher Zoë Hitzig resigned when ad testing began, citing deep reservations. She argued the company held “the most detailed record of private human thought ever assembled” and warned that advertising built on that archive could manipulate users in ways no current tools can detect or prevent.

Anthropic moved fast to exploit the controversy. The company ran Super Bowl ads that mocked poorly targeted chatbot advertising, while positioning Claude as the cleaner alternative. OpenAI’s CEO Sam Altman fired back, calling Claude an “expensive product” for “rich people.”

OpenAI spent $34 billion last year and remains unprofitable. Its IPO filing targets a valuation above $1 trillion. Whether Cannes moves the needle with advertisers or reassures IPO investors may depend on whether OpenAI can build the measurement tools the industry says it still lacks.

Source: BeInCrypto