In partnership with
MediaMorph Edition 86 - by HANA News
OpenAI ad revenue: 700m x $58 is a big number
Was this newsletter forwarded to you? Sign up here
The written-by-a-human bit
After saying in October 2024 that “I kind of think of ads as like a last resort for us as a business model”, it seems Sam Altman is at the last resort. Last week, he announced, “We are starting to test ads in ChatGPT free and Go (new $8/month option) tiers.”
The financial argument is compelling for a startup with a $9bn annual cash burn rate. Ben Thompson is a fan, as he says on his blog, Stratechery, though he asks what took them so long.
Consider that 95% of 700m active monthly users are on the free tier, and that some studies suggest that the “intent” is high - one study claims that ChatGPT traffic converted at 16% as opposed to Google Organics 1.76% - a 9X difference.
Then consider that Facebook’s stated ARPU is $58 per user, and the numbers stack up — if OpenAI can convert at just 10% of Facebook’s ARPU, they fill a $5bn black hole. At the high end, 700m x $58 is a big number ($40.6bn).
Can they pull it off without screwing it up? There will be many hazards around implementation, privacy, trust, and incentives. With such high intent, they would be smart to go down the performance/affiliate route rather than CPM or PPC.
Where does this leave publishers?
The good news for those who have signed deals, contributed content and have leverage is that they should be in line for some form of compensation (Perplexity already pays out 80% of subs fees to participating publishers). Moreover, as I often argue, such a high-intent audience should be rich pickings for finding new subscribers via well-placed ads.
On the flip side, this is not incremental ad revenue, but repurposed ad spend from existing platforms. Google and Meta's money looks the most vulnerable, but it could be another suck on publishers’ existing client ad spend.
Hats off to symbolic.ai for signing a vendor partnership with News Corp to create an end-to-end AI-powered publishing platform. The tool claims to assist with research, fact-checking, formatting and distribution. All those can be done today with the selection of fragmented solutions, so it is smart to bring them together in a seamless workflow. Early tests with Dow Jones’ Newswires suggest a 90% productivity gain for complex research tasks.
Aside from coding agents, we see “deep research agents” as the breakout use case for agentic AI this year. Generalist deep research is easy to access via paid subscriptions, but it is a one-shot query prone to deviation and hallucination. Bespoke training can provide agents with guidance, grounded citations, fact-checking, and structured outputs, all aligned with the overall content strategy. Chat to us to learn more.
Mark Riley, CEO Mathison AI
AI and Media and Journalism
AI journalism startup Symbolic.ai signs deal with Rupert Murdoch's News Corp TechCrunch - January 15, 2026 Symbolic.ai has partnered with News Corp to transform its Dow Jones Newswires using AI technology, aiming to boost newsroom productivity by up to 90% for complex tasks. This collaboration promises to enhance various editorial workflows, from newsletter creation to fact-checking, signalling a significant advancement in the integration of AI within journalism. |
Getting Smarter about AI and Journalism Louise Yarnall, with her extensive experience at SRI and a background in journalism, emphasises a human-centred approach to AI development, while Chris Neklason harnesses AI tools to improve local government information and civic engagement. As we near Dr. Martin Luther King Jr.'s birthday, it's vital to consider how technology can empower communities for positive change. |
Media Execs Prepare for AI to Bring End of Journalism Industry Futurism - January 18, 2026 A new survey highlights that media executives anticipate a 43% decline in website traffic over the next three years, largely due to AI tools like ChatGPT, which could undermine traditional news brands. As concerns grow over journalistic integrity and accuracy in AI-generated content, publishers are pivoting towards original investigations and human-centered stories while rethinking their approach to news delivery. |
Sarah Stultz: Artificial intelligence and journalism ethics Albert Lea Tribune - January 14, 2026 Boone Newspapers, parent company of the Albert Lea Tribune, has implemented a strict artificial intelligence policy to maintain journalistic integrity, prohibiting AI from writing news stories or altering images. This commitment to transparency and accuracy emphasizes human oversight in all AI-generated content, ensuring that readers can trust the information they receive. |
The Banking on AI Podcast episode 5 Td - A recent survey by the Canadian Journalism Foundation reveals that while 88% of Canadians are worried about AI-generated deception in news, trust in traditional media remains robust. In a discussion on The Banking on AI Podcast, CJF's Natalie Turvey emphasized the need for an independent watchdog to enhance public trust in AI, while also highlighting how journalists are using AI to benefit the public. |
Media leaders expect 43% more traffic losses as AI reshapes journalism PPC Land - January 17, 2026 Media leaders anticipate losing nearly half their remaining traffic in the next three years due to AI's impact on news consumption, with Google Search referrals plummeting from 51% to 27%. As publishers pivot towards video and creator partnerships while deprioritising traditional SEO, they face significant challenges in adapting to a rapidly changing media landscape. |
How much could AI save your support team?
Peak season is here. Most retail and ecommerce teams face the same problem: volume spikes, but headcount doesn't.
Instead of hiring temporary staff or burning out your team, there’s a smarter move. Let AI handle the predictable stuff, like answering FAQs, routing tickets, and processing returns, so your people focus on what they do best: building loyalty.
Gladly’s ROI calculator shows exactly what this looks like for your business: how many tickets AI could resolve, how much that costs, and what that means for your bottom line. Real numbers. Your data.
AI and Academic Publishing
AI in Science Research Boosts Speed, Limits Scope IEEE Spectrum - January 19, 2026 A study reveals that while AI tools like ChatGPT and AlphaFold boost researchers' productivity and visibility, they also lead to a narrowing of research topics as scientists gravitate towards popular, easily solvable problems. Experts warn this trend could stifle originality and diversity in scientific inquiry, but some, like the speaker identified as an "AI optimist," advocate for leveraging AI to explore broader and more innovative questions in research. |
Publishers Seek to Join Class Action Against Google Cengage and Hachette Book Group have joined a class action lawsuit against Google, accusing the tech giant of copyright infringement for allegedly using millions of books without proper licensing to train its generative AI product, Gemini. The lawsuit raises critical questions about copyright law in the age of AI and seeks remedies including an injunction to stop further infringements and the destruction of infringing copies. |
Have Pen, Laptop, and ChatGPT, Will Publish (guest post) Daily Nous - news for & about the philosophy profession - January 19, 2026 In his insightful guest post, Jimmy Alfonso Licon shares a hybrid approach to research and writing that seamlessly integrates AI tools like ChatGPT while preserving intellectual integrity and creativity. By combining critical self-reflection with AI assistance, he transforms initial ideas into well-structured scholarly works, ensuring thorough engagement with literature and rigorous revision processes before submission. |
‘Fake Books’ Scandal in Iraq Raises Tough Questions about AI, Publishing Integrity The Iraq International Book Fair, a platform for cultural exchange, was recently marred by controversy over a provocative book that ignited debates on censorship and artistic freedom. As tensions flared between critics and supporters, the event shifted from celebrating literature to grappling with the complexities of expression in a fragile social landscape. |
Science unlocked: opening knowledge to accelerate global progress Science unlocked: opening knowledge to accelerate global progress - January 14, 2026 CNBC's docufilm "Science Unlocked" explores Frontiers' mission to enhance open science, revealing how removing knowledge barriers accelerates innovation in health, climate, and technology. This theme will continue at Frontiers Science House, launching at the World Economic Forum Annual Meeting 2026, promoting interdisciplinary collaboration for informed decision-making. |
The Peer‑Review Problem and the Explosion of Retractions: News Article The recent rise in scientific paper retractions has exposed critical flaws in the peer review process, driven by issues such as paper mills and biases among reviewers. As concerns about research integrity grow, there is a pressing need for enhanced oversight and transparency in academic publishing to restore trust in scientific literature. |
Guest editors use special issues to ‘publish in support of self’ Times Higher Education (THE) - January 17, 2026 Research integrity experts are raising alarms about the high levels of "endogeny" in academic publishing, where journal editors often publish in their own special issues, creating potential conflicts of interest and biased results. A recent analysis found that many special issues exhibit alarming rates of self-publishing, prompting calls for clearer guidelines and transparency from publishers to ensure fair scholarly practices. |
This newsletter was partly curated and summarised by AI agents, who can make mistakes. Check all important information. For any issues or inaccuracies, please notify us here
View our AI Ethics Policy
