Perplexity AI Plans to Include Ads in Its Platform

Perplexity AI introduces ads in the U.S. as “sponsored follow-up questions”, focusing on boosting revenue and attracting high-income users.

November 13, 2024 4:00 PM

2 MIN READ

Daria Dondea

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Perplexity AI

ccording to the AI-powered search engine, the company plans to experiment with its platforms' ads starting this week.

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It seems that the website will begin to show ads in the U.S., and will initially appear as “sponsored follow-up questions”. For example, after someone uses a prompt to get an answer, these ads will appear on the side of the answer with the appropriate “sponsored” label.

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Currently, a few agencies participate in this AI Perplexity AD program such as Universal McCann, PMG, or Whole Foods. In their blog post, Perplexity stated “Ad programs like this help us generate revenue to share with our publisher partners,”.

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“Experience has taught us that subscriptions alone do not generate enough revenue to create a sustainable revenue-sharing program. [A]dvertising is the best way to ensure a steady and scalable revenue stream.”, the company also added.

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It’s important to mention that all sponsored answers will be still generated using artificial intelligence technology from the company, and will not be generated by those sponsored brands. Also, AI Perplexity confirmed that the advertisers will not have access to users’ personal information.

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Compared with the ChatGPT decision to not include ads in their search engine, Perplexity seems to embrace this functionality. Also, its competitor, Google, included in the AI Overviews a feature to show ads if users search for certain queries on mobile in the U.S.

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So, the AI Perplexity search engine is currently promoting its ads products as a higher quality alternative for the Google AI Overviews and accentuates the Perplexity search platform's ability to attract educated also also high-income consumers.

Besides all of these qualities, various analysts have some concerns about the reach, scale, and targeting potential of the ads on the AI Perplexity search engine.

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Currently, Perplexity search engine company is under pressure to boost monetization due to the fact that is in the final stages of raising a $500 million funding round at a $9 billion valuation. Now, its single revenue stream is Perplexity Pro, which represents a premium subscription that offers extra features at $20 per month or $200 annually.

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It remains to be seen if Perplexity will have success with the ads feature in the Perplexity AI apps. Stay tuned for more Perplexity search engine updates!

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Besides all of these qualities, various analysts have some concerns about the reach, scale, and targeting potential of the ads on the AI Perplexity search engine.

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It remains to be seen if Perplexity will have success with the ads feature in the Perplexity AI apps. Stay tuned for more Perplexity search engine updates!

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