Perplexity AI, the developer behind the AI-driven search platform of the same name, announced on Tuesday its intention to initiate advertising trials this week. This decision follows earlier reports detailing the company’s goal to integrate ads by year’s end to enhance revenue streams. The firm assures users that advertisements will be presented in a manner that maintains the integrity of the user experience. All ads will be explicitly labeled as sponsored, ensuring users are aware when an advertisement is displayed.
Details of Perplexity’s Advertising Approach
In a blog entry, Perplexity outlined its strategy for implementing advertisements on its platform. The company emphasized that its approach will avoid the “arbitrary tactics” often seen in SEO practices that prioritize ranking improvements over user utility. Instead, Perplexity plans to utilize a transparent format that aims to spark user curiosity regarding brands.
Visual representation of ads on Perplexity’s platform
Photo Credit: Perplexity
The ads will be designed as “sponsored follow-up questions” and “paid media” positioned alongside answers. Each advertisement will pose a question that directly relates to the brand’s products or services. Perplexity also clarified that if users engage with the sponsored question, the response will be generated by its AI system rather than being scripted or influenced by the brand.
Among the initial brand partners for this venture are Indeed, Whole Foods Market, Universal McCann, and PMG, with users expected to see their ads shortly. The advertising trials will initially be available to users located in the United States.
Perplexity believes that including ads on its platform will create a revenue stream that can be shared with its publishing partners. The company compensates these partners for the use of their content and data to derive responses to user inquiries.
“Our experiences have shown that relying solely on subscriptions does not yield sufficient revenue for a sustainable revenue-sharing program. Given the rapid growth of our publisher program, advertising represents the most viable option for establishing a consistent and scalable revenue source,” Perplexity concluded.
