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  • Issue #26: Open AI and Shopify partner to drive revenue

Issue #26: Open AI and Shopify partner to drive revenue

The fastest way for digital marketing pros to look smart in the weekly stand-up

☕ Hello there adtech insiders

Grab yourself a quick cup of tea and browse through top stories from this week so far.

🗞️ Top Stories

  1. 86% of brands already use Gen AI for video, new IAB study finds
    IAB’s video ad spend report says AI creative will hit 40% of video ads by 2026 and that buyers now expect outcomes, not simply reach, from CTV. TV Technology

  2. Clinch unveils “Unlimited Ad Serving” model
    CPMs are scrapped for a fixed monthly fee that gives self-serve clients limitless delivery, shifting focus from impressions to outcomes. ExchangeWire

  3. Reddit & EU increase age checks in safety drive
    Reddit will require UK users to verify age as part of a wider push to keep minors from harmful content, aligning with tougher the EU guidelines. TechCrunch

  4. Ozone eyes US expansion to take on Meta and Google
    The publisher alliance is onboarding US titles and CTV inventory as it positions itself as a premium, privacy safe alternative to big tech. The Media Leader

  5. OpenAI to take a cut of shopping revenues from ChatGPT
    The AI giant is testing a chat checkout with Shopify brands and plans to earn a commission on every sale, it’s first crack at ecommerce revenue. Wired

💭 60-Second Take – OpenAI aims to grow ChatGPT revenue in partnership with Shopify

OpenAI is piloting a chat checkout that lets users buy products surfaced by ChatGPT and sends the company a commission on each sale. It’s the firm’s first meaningful swing at transaction revenue beyond subscriptions.

  • Global demand: ChatGPT fields c.200 million weekly visits, even a 1% conversion at an average £50 basket could yield £500 million in incremental revenue annually

  • Relevant placements: Product links arise from user queries, turning advice into purchase moments with minimal friction and avoiding ad clutter

  • Affiliate model: The likes of Amazon, Klanra and Pinterest have scaled revenue driving solutions on single digit commission rates.

  • Future foundations: Commerce data can power sponsored product slots, personalised recommendations and shoppable answer cards, perhaps the gateway to a future auction based ad marketplace.

OpenAI and Shopify’s partnership is the start of an anticipated move towards gen AI commercialisation. Starting with commerce fees to provide incremental sales, then scaling into biddable ad inventory - if done well, ChatGPT could unlock a lucrative revenue mix without sacrificing its growth and user experience.

Got feedback, suggestions or interested in partnerships? Hit reply and let us know.

See you next time,

Access Adtech