Target is testing contextual advertisements in ChatGPT through its retail media network, Roundel, marking a significant step in AI-driven retail marketing. The pilot will serve clearly labeled ads that remain separate from ChatGPT’s responses, addressing concerns about AI monetization influencing guidance.
The initiative allows Target to reach users asking about products, such as kitchen appliances, with relevant placements from Roundel’s portfolio of over 2,000 vendors. Target has reported that ChatGPT-driven traffic to its site is growing 40% monthly, making the platform a natural extension of its digital retail strategy.
The pilot applies to free-tier ChatGPT users and the $8-per-month ChatGPT Go subscription, while Plus, Pro, Business, and Enterprise users will not see ads. OpenAI and Target will only share aggregated data with advertisers on campaign performance.
Target previously launched a dedicated ChatGPT app experience in November and partnered with Google’s Gemini AI in January to enhance shopping capabilities.
Several other brands and agencies have also joined the ChatGPT ads pilot, with WPP Media reporting that clients including Adobe, Audible, Ford, and Mazda will participate as the platform surpasses 800 million weekly active users.
