Episode 13 - The Thinking Behind Ads in ChatGPT

Bullish:

• $OPENAI - OpenAI introducing ads to free tier to democratize AI access while maintaining trust-first approach, expanding reach to 800M+ users with new revenue stream

  • “800,000,000 plus people were using this”

    Asad·0:42

  • “our mission is bringing AGI to all of humanity and to benefit all of humanity”

    Asad·0:34

  • “Ads is one of the most proven models to be able to do that for consumer products”

    Asad·0:50

  • “we are in the business of trust. So I think if we have to say what is our core business is like doing users trust”

    Asad·0:21

  • “We have a really robust enterprise business and there will be no ads over there. And then we'll have a very robust consumer business and ads will help us grow within that”

    Asad·19:21
• $AIMODELS - AI models becoming essential infrastructure for democratizing access to technology and enabling new business models through ads and enterprise

  • “how do you take the best version of that product to everyone? Ads is one of the most proven models to be able to do that for consumer products”

    Asad·0:45

  • “you want to take the best model, you want to give the highest limits, usage limits to people”

    Asad·0:59

  • “it's a very natural fit for a company whose ambition is actually to take the best AI to all of humanity”

    Asad·1:10
• $SMB - Small businesses will benefit from AI-powered advertising that eliminates need for expensive performance marketers and democratizes marketing

  • “when it came to ads, they actually had to hire like three performance marketers to do the work because it's so, cumbersome, so analytical”

    Asad·20:57

  • “the vision has to be where almost as easy as you were prompting nowadays for questions, you could say my goal is sell these shoes more in Midwest and go”

    Asad·21:10

  • “literally a small business has to hire performance marketers which could be one of the biggest costs”

    Asad·21:34

  • “it enriches everyone's life from that perspective, like enabling creation of those products, selling of those products”

    Asad·23:53

Bearish:

• $ADTECH - Traditional ad tech and performance marketing roles at risk as AI makes advertising conversational and eliminates need for specialized expertise

  • “they actually had to hire like three performance marketers to do the work because it's so, cumbersome, so analytical”

    Asad·20:58

  • “literally a small business has to hire performance marketers which could be one of the biggest costs”

    Asad·21:34

  • “the vision would be that it is as easy as just steering and telling what you need from your business or describing the what, but not having to think about how it will work and how many campaigns and how much dollars”

    Asad·21:50

  • “next step would be more actual conversational ad where you could truly kind of understand what this product is about”

    Asad·24:24
• $GOOGL - OpenAI's ad model threatens traditional search advertising by offering more conversational, trust-based approach with higher user engagement

  • “This is very different than many other scenarios. If you're just doing like kind of a transactional stuff like again, you give the question and answer came back and that's the end of it like a search query”

    Asad·6:27

  • “I think that's that's okay, but it is not a long term relationship”

    Asad·6:37

  • “For us, I think the whole product, whether it's enterprise, whether it's consumer, whether it's anything, devices in the future, they're all centered around trust”

    Asad·6:51