OpenAI Embraces Ads: ChatGPT's Shift Reshapes Digital Advertising Landscape

• OpenAI introduces advertising on ChatGPT in the US, abandoning its "ad-free" promise and signaling a new phase for digital advertising where conversations replace search.
• The move is expected to reshape brand discovery, targeting, and consumer intent in India, with experts like Gowthaman Ragothaman highlighting the platform's transformation into an ad-funded model.
• Advertising will become market-specific, requiring OpenAI to develop a full-fledged ad-serving technology and focus on audience measurement and user stickiness.
• The shift raises concerns about user data privacy, especially with India's DPDP Act, and the potential for advertisers to influence platform content.
• Experts believe India will follow cautiously, with success depending on localization, clear ad labeling, and a strong separation between organic and paid content to maintain user trust.

Why It Matters: OpenAI's move to an ad-funded ChatGPT marks a significant shift, transforming digital advertising and raising key questions for India.