• by Ray Schultz , May 7, 2024

OpenAI has nailed a deal with another major publisher, signing a strategic partnership and licensing agreement with Dotdash Meredith that will include editorial and advertising components. 

As part of the arrangement, OpenAI will display content and links attributed to Dotdash Meredith in ChatGPT responses.

The firms will also collaborate on creating AI products and features for readers and on enhancing the OpenAI model with historical and contemporary content. 

"We have not been shy about the fact that AI platforms should pay publishers for their content and that content must be appropriately attributed," says Neil Vogel, CEO of Dotdash Meredith. "This deal is a testament to the great work OpenAI is doing on both fronts to partner with creators and publishers and ensure a healthy Internet for the future."

Vogel adds, “This partnership delivers the best, most relevant content right to the heart of ChatGPT."

OpenAI's models will also be deployed to help Dotdash Meredith’s intent-based ad-targeting solution D/Cipher. 

D/Cipher connects advertisers to consumers based on context, not on personal identifiers such as cookies. 

"D/Cipher is built upon billions of first-party data signals from across our incredible brands - we understand consumer intent based on context, not personal identifiers," says Jon Roberts, chief innovation officer, Dotdash Meredith. 

Roberts adds, "We can tap the power of OpenAI's models to make D/Cipher ad targeting more granular, more nuanced, and more effective in engaging consumers. This combination will be a game changer for advertisers."

Brad Lightcap, COO of OpenAI states, "We're thrilled to partner with Dotdash Meredith to bring its trusted brands to ChatGPT and to explore new approaches in advancing the publishing and marketing industries."

OpenAI recently signed agreements with Financial Times and Axel Springer, allowing forms of content usage. But it has also been sued by the New York Times and eight Alden Global Capital newspapers.

In other news, Dotdash Meredith parent IAC posted its Q1 results, showing revenue of $929.2 million, a 14% decline from the same period in 2023. 

The company reported an operating loss of $59.2% million, a 56% improvement over the same quarter last year.  

For its part, Dotdash Meredith saw a flat 1% increase in total Q1 revenue for a total of $390.5 million. But it also achieved a 13% increase YoY in digital revenue to $209 million. Its operating loss of $21 million decreased $90 million YoY.

IAC’s Angi Inc. unit drove $305 million in revenue, down 14% YoY. This was driven by declines across the domestic business but was partially offset by 18% international growth.