AI paid for by Ads – the gpt-4o mini inflection point

🌈 Abstract

The article discusses the potential of using AI-generated content, specifically the GPT-4o mini model, to create dynamic, ad-supported blog posts. It explores the cost of generating AI content compared to the potential revenue from ad impressions, and whether this could become a viable business model for the future of the internet.

🙋 Q&A

[01] OpenAI's GPT-4o mini model

1. What are the pricing details for the GPT-4o mini model?

• The GPT-4o mini model is priced at $0.15 per 1 million input tokens and $0.60 per 1 million output tokens.

2. What is the potential for building dynamic, AI-generated content supported by ads?

• The article suggests that the low cost of the GPT-4o mini model makes it possible to build dynamic, AI-generated content entirely supported by ads.

[02] Earning potential from ad impressions

1. How much can publishers earn from ad impressions?

• The article uses Google's AdSense estimated revenue calculator to estimate that a website with 50,000 monthly page views in the Finance category could potentially earn around $1,550 per year, which is approximately $0.0026 per page view.

[03] Cost of generating AI content

1. What is the cost of generating AI content using the GPT-4o mini model?

• The article provides an example of generating a blog post in response to a user's query. The cost of generating the 829-token blog post is estimated to be $0.00051525.

2. How does the cost of generating AI content compare to the potential revenue from ad impressions?

• The article suggests that the cost of generating the AI-powered blog post ($0.00051525) is significantly lower than the potential revenue from a single page impression ($0.0026), resulting in a net profit of around $0.002 per blog post.

[04] Future of the internet

1. What are the author's thoughts on the potential future of the internet being dominated by dynamically generated AI blogs?

• The author is unsure if this will actually happen, but notes that the internet has been on a "downward trend" and that much of the current internet content is already "SEO content blogspam generated by cheap copywriters."

2. What example is provided of an existing project exploring AI-generated web content?

• The article mentions Websim, a "web simulator" that uses large language models to dynamically generate an alternative internet, though it currently does not have any ads or monetization.