Eying Ads, Open AI Launches Creative Hiring Spree 12/03/2024
OpenAI, now restructuring into a for-profit entity, is considering the introduction of advertising into its AI-powered search engine to explore new revenue streams. Industry giants like Google, Microsoft, and newcomer Perplexity have already incorporated advertisements into their search engines to adapt to the changing landscape of search queries evolving into direct answer results.
Hiring Advertising Talent
Following a significant turnover at OpenAI, the company has initiated a hiring spree focusing on advertising professionals with backgrounds from top advertising agencies and competitors like Meta and Google. Creative director Adam Koppel recently joined OpenAI from 72&Sunny, while Dane Vahey assumed the role of head of strategic marketing after his tenure at NexHealth as the head of marketing.
Several other executives have also joined OpenAI to bolster its creative and enterprise marketing efforts. Charlie Gschwend was onboarded as the creative director, bringing experience from Rosewood Creative and freelance work. Carrie Lorenzo, previously the head of marketing at NexHealth, now supports enterprise marketing at OpenAI.
Ad Implementation Strategy
OpenAI is currently strategizing the best advertising model for its for-profit venture, emphasizing a cautious approach to the timing and placement of ads. According to Sarah Friar, the chief financial officer at OpenAI, the company aims to be deliberate in its advertising decisions. Friar, with a background at Nextdoor, Square, and Salesforce, brings valuable leadership experience to OpenAI.
Varun Shetty, OpenAI's newly appointed head of media partnerships, transitioned from Meta, where he held the position of director of business development and product partnerships. Additionally, OpenAI welcomed Shivakumar Venkataraman as the vice president, who formerly led Google's search advertising team.
Diversification of Revenue Streams
As of now, OpenAI's primary revenue sources include API access for businesses and developers to leverage its technology, along with data capabilities that enhance question-answering accuracy. However, the company anticipates a shift in this revenue composition as it ventures into the realm of advertising.
