OpenAI Ads: Product Feed Ads Launch in Ads Manager Beta

OpenAI has launched Product Feed Ads in its Ads Manager beta, transforming ChatGPT into a product discovery engine. This major update lets retail and e-commerce advertisers upload their entire product catalogs. The platform then automatically generates sponsored product placements. This marks OpenAI's biggest move yet to compete with Google Shopping and Meta Ads. It aims to capture commercial queries within AI conversations. Previously, advertising focused on manual setup and basic text formatting. Now, catalog-based product feeds fundamentally change how brands gain visibility. ChatGPT uses structured data to dynamically show items based on conversation context. Early tests show strong results; one brand reportedly doubled its Click-Through Rate and cut its Cost-Per-Click by 50% using feed-based ads. The technical framework mirrors Google Shopping, allowing merchants to reuse existing product files. However, product feeds must be uploaded via a secure SFTP connection, not a web interface. The system requires a minimum of 1,000 products and can handle up to 2 million SKUs per advertiser. For now, these products are only eligible for paid ad placements. This development could change how businesses reach customers through AI.