OpenAI's Slow Ad Rollout Frustrates Partners
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 20 2026
0mins
Should l Buy GOOGL?
Source: Newsfilter
- Slow Ad Testing Progress: OpenAI's conservative approach to rolling out ads on ChatGPT has frustrated major partners like WPP, Omnicom, and Dentsu, who were eager to explore this new advertising format despite initial excitement.
- High Ad Commitments: Brands participating in the test are required to commit between $200,000 and $250,000, which is double the typical experimental ad budget, limiting their ability to reallocate funds and impacting their advertising strategies.
- Surge in Ad Volume: According to Sensor Tower, the number of ads served increased by approximately 600% from the beginning of March, indicating significant potential for ad deployment, yet only about 5% of ChatGPT mobile users have been exposed to these ads, reflecting a low market penetration.
- Future Growth Expectations: Truist analysts project that OpenAI's ad revenue will be under $1 billion this year but could rise to over $30 billion by 2030, highlighting the vast market potential for large language model-powered ads, even as competitors like Anthropic remain cautious about the advertising model.
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Analyst Views on GOOGL
Wall Street analysts forecast GOOGL stock price to fall
33 Analyst Rating
26 Buy
7 Hold
0 Sell
Strong Buy
Current: 401.070
Low
305.00
Averages
374.25
High
400.00
Current: 401.070
Low
305.00
Averages
374.25
High
400.00
About GOOGL
Alphabet Inc. is a holding company. The Company's segments include Google Services, Google Cloud, and Other Bets. The Google Services segment includes products and services such as ads, Android, Chrome, devices, Google Maps, Google Play, Search, and YouTube. The Google Cloud segment includes infrastructure and platform services, collaboration tools, and other services for enterprise customers. Its Other Bets segment is engaged in the sale of healthcare-related services and Internet services. Its Google Cloud provides enterprise-ready cloud services, including Google Cloud Platform and Google Workspace. Google Cloud Platform provides access to solutions such as artificial intelligence (AI) offerings, including its AI infrastructure, Vertex AI platform, and Gemini for Google Cloud; cybersecurity, and data and analytics. Google Workspace includes cloud-based communication and collaboration tools for enterprises, such as Calendar, Gmail, Docs, Drive, and Meet.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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