As retailers explore how best to engage consumers through AI and third-party platforms, Target Corp. has announced it will serve as an early tester of contextual advertising on ChatGPT.
Traffic from ChatGPT to Target is growing 40% each month on average, the retailer reported. The pilot reflects Target’s broader strategy of meeting consumers wherever they are in the product discovery process. It also marks the latest chapter in the retailer’s advancements in agentic commerce, which include the recent rollout of the Target app on ChatGPT and a partnership with Google to co-develop the Universal Commerce Protocol.
With OpenAI, Target and its Roundel retail media business will produce sponsored, contextual and clearly labeled ads on ChatGPT that will focus on consumers using the platform to find products, deals and inspiration, reaching them at moments of specific engagement. As conversational AI continues to shape how consumers shop and make purchases, Target will use technology to meet consumers in new ways during those moments when they are considering purchases, the company indicated. The goal is to make the experience more personalized and helpful as it connects shoppers with relevant products and ads that feel useful, relevant and aligned with what they’re actively seeking.
Based on the keywords in a consumer’s ChatGPT prompt, the ads received will align with shopper interactions. If a consumer asks a food-prep question, such as “What are some countertop cooking appliances that make everyday meals more convenient?” the response may include an ad for an appliance, such as an air fryer, from a participant in the OpenAI test program. The ad will be embedded in the personalized response but appear separately and distinctly, and not influence the answer provided by ChatGPT, Target emphasized. As an early pilot program partner, Target, through Rondel, is unlocking opportunities for brand partners to appear in relevant moments beyond traditional media placements and to benefit from insights into user behavior.
By extending the brand experience into conversational AI environments, Target can better leverage third-party platforms to connect consumers with the right products faster in the moments that matter, the retailer noted.
Asad Awan, Ads and Monetization lead at OpenAI, said in helping announce the partnership. “We believe ads play an important role in continuing to support broad access to artificial intelligence. By working closely with partners like Target in this pilot, we’re able to thoughtfully test new ad experiences and learn together to ensure ads are separate and clearly distinct, relevant and useful while maintaining the trust people place in ChatGPT.”
