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While it’s still early days for Bing’s AI chatbot, Microsoft is already exploring ways to monetize its investment. According to Reuters, the company is in discussions with advertising agencies to incorporate ads into the Bing AI chatbot. This move is not surprising, given the potential of AI chatbots to transform the way people search for information and the current advantage Microsoft has over industry giants like Google, which has already suffered a loss of $100 billion in market value over a botched Bard AI launch event.
How will Microsoft incorporate ads in the chatbot?
Reports suggest that the company plans to insert ads into the responses generated by the Bing chatbot, taking on traditional ads where brands pay to have their products or websites appear on search results for relevant keywords. Microsoft is already testing a version of these ads on Bing.
Secondly, Microsoft intends to introduce an advertising format customized for specific industries. For instance, when a user asks the chatbot for the most economical flights to Italy, booking website ads could appear. Additionally, Microsoft is also exploring the possibility of including ads in links that the chatbot uses for citations in its responses. This will enable advertisers to reach users in a more targeted and personalized way, benefiting both parties.
“They seem intent on starting off immediately with paid ads integrated,” said Michael Cohen, executive vice president of performance media at Horizon Media.
Integrating ads in Bing’s AI chatbot will be a game changer for Microsoft as they already have millions of people waiting to get access and every percent of the search industry market share that Microsoft gains would generate another $2 billion of ad revenue. However, there could be downsides to these ads, as users might see them as intrusive or annoying, which could detract from the user experience. Therefore, the company would need to determine the optimal balance between monetization and user experience.
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