OpenAI is changing how e-commerce advertising works inside ChatGPT by introducing automation that turns product catalogues into ads. According to a report by Digiday, the company is allowing retailers to connect their catalogue, apply filters for eligible items, and let the system generate ads using structured product data instead of requiring them to build campaigns product by product.

The key point is that the ad placement inside ChatGPT is not changing. Ads still appear below the response and are labelled as sponsored. What is changing is the process behind how those ads are created. For advertisers, especially large retailers managing thousands of SKUs, the workflow shifts from manual setup to feed-based automation. 

How Product Feed Campaigns Work

The system is built around a “product feed” setup. Retailers connect their product catalog, set filters for which products are eligible, and the platform creates ads automatically using product names, images, pricing, and attributes.

Unlike ad formats that require advertisers to build individual creatives or write ad copy separately, product feed campaigns generate ad content directly from catalog data. A user asking ChatGPT about a product category can be served a relevant product ad without the advertiser having built a separate creative for it.

This is similar to how advertisers already manage structured feeds for platforms like Google Shopping. Retailers can connect the same structured product file they already send to Google Shopping without reformatting it for ChatGPT.

Testing, Scale, and Rollout Approach

According to Digiday’s reporting, at least one retail brand has already tested the system through Criteo, OpenAI’s first ad tech partner. An ad buyer involved in the process described the setup as more straightforward than expected. Yang Han told Digiday that the same feed posted to its platform will automatically flow to OpenAI once supported.

Before granting full access, OpenAI is reportedly asking new e-commerce partners to submit a sample feed of around 100 products. After testing, advertisers can connect their full catalogue. The system is designed to handle up to one million SKUs per advertiser, according to an ad executive briefed on the update. 

Competitive Context

Product feed ads are already standard infrastructure at Google Shopping, Meta Advantage+ Shopping, and Amazon Ads. OpenAI's positioning centers on intent: ads in ChatGPT are served based on what users are actively asking in conversation, rather than signals from search behavior, social engagement, or marketplace browsing.

OpenAI continues to expand its ChatGPT ads business. Last week, the company launched Ads Manager, a self-serve platform that lets advertisers run campaigns directly in ChatGPT. Advertisers can choose between CPC and CPM bidding, while the company has also added the Conversions API and pixel-based tracking to measure post-click activity.

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