OpenAI Will Auto-Rewrite Ads From October 30 Unless Advertisers Opt Out

OpenAI will automatically modify advertisers' existing ads with what it calls "creative enhancements" starting October 30, unless each advertiser goes into settings and deliberately disables the feature. No human approval is required before an updated ad serves.

The word "enhancement" suggests minor tweaks, such as a background color change or adjusted dimensions. In reality, the feature can rewrite anything from the headline to the destination link. That is a full rewrite of the ad, not a cosmetic one.

The mechanism is opt-out, not opt-in. Behavioral optimization of ads is standard practice across the industry. What is new is that OpenAI reverses the default: the change applies automatically, and the burden of action falls on the advertiser.

Why the timing raises questions

Removing human oversight from creative decisions is a notable move for a company that has stressed safe, relevant advertising since it launched its ad platform earlier this year. The launch date lands just before Halloween, which industry observers have flagged with some unease.

Search Engine Land called it "nice" that OpenAI gave advertisers advance notice, "with clear instructions on how to turn it off." Critics counter that offering a way to prevent your ad from being rewritten without consent is the bare minimum, not a courtesy.

The open question is performance. If most advertisers do not opt out, the market will get a live test of whether machine-rewritten creative beats the human-approved original.

Are sportsbooks moving into news coverage?

Gambling sponsorships have saturated sports. Now they are moving into news, timed to the midterm elections.

Most of the deals so far involve prediction markets — platforms where users bet on event outcomes, which deny they are sportsbooks like DraftKings or FanDuel. Those markets also take bets on sports and partner with sports leagues.

The roster is already substantial:

• CNBC was the first news organization to partner with Kalshi, bringing its prediction data into news coverage.
• CBS, CNN, Fox News and The Associated Press all now have Kalshi deals.
• Substack and Dow Jones, the parent of The Wall Street Journal, partner with Polymarket.

News organizations justify promoting prediction markets on the grounds that they are not technically gambling companies. CBS has now dropped that cover. Its stations will carry DraftKings branding throughout their election night coverage, Status reports.

CBS denies that DraftKings will inform its election reporting in any way. The deal appears driven by sportsbooks confronting growing competition from prediction markets. Both sides have grown more active in political lobbying as well as advertising. If Kalshi and Polymarket appear during election news, DraftKings wants its logo seen too.

What is happening with NBA advertising money?

Basketball season has started, and advertisers are scrambling to reach young NBA fans. But with mounting pressure to prove cost efficiency against ad performance, buying commercial slots during NBA games is no longer the default choice, Digiday reports.

Sponsorships are the growth channel. So are creator deals, because young fans scroll social media while watching sports. Brand sponsorships now account for roughly 15% of NBA revenue at $1.9 billion, according to Sportico.

One case shows the payoff. Ledger, a blockchain and digital security firm, signed a deal with the San Antonio Spurs last year. Ledger became the team's official digital asset partner and placed its logos on Spurs jerseys. The company says Spurs fans are 4.8 times more likely to name Ledger as a leading firm in its category and twice as likely to prefer it over competitors.

Big-ticket deals invite scrutiny. Adidas spent more than $1 billion on marketing during the World Cup and now faces investor pressure to prove the spend was worth it.

Also on the radar

• Adult children are increasingly managing algorithms and screen time for senior parents ensnared in scam-laden social feeds. (NY Magazine)
• Walmart will open its digital doors to agents browsing on behalf of people. (Adweek)
• Australia will compel Apple to change its App Store policies by March 2027, in line with Europe's Digital Markets Act. (AppleInsider)
• Some publishers are making content easier for AI to read; the Writers Guild of America East has a tool that makes writing harder for AI to read. (Deadline)
• Investors are buying credit default swaps in anticipation of SoftBank defaulting on its AI investments — a hedge resembling pre-2008 bets against mortgage-backed securities. (Grace Blakeley on Substack)
• Legal backlashes against US tech giants may be starting to produce real change. (NYT)

A hire to watch

GSTV has named Claire Wyatt, previously of The Trade Desk, as its chief growth officer.

The OpenAI decision takes effect October 30. Advertisers who want humans to keep the last word on their creative have until then to find the setting and switch it off.