Perplexity AI To Roll Out Ads As It Navigates Growing Popularity
Perplexity has updated its platform to improve citation practices and launched a revenue-sharing model for publishers.
Perplexity AI, an AI-assisted search startup, is preparing to introduce ads to its platform in the fourth quarter of this year, as it steps into its monetization strategy. The company has experienced rapid growth, but it has also faced controversy over allegations of plagiarizing content from major media outlets.
Perplexity’s AI-powered search app, which has been downloaded over two million times, currently answers more than 230 million queries a month, with the U.S. alone seeing an eightfold increase in usage over the past year. To capitalize on this growth, Perplexity has been circulating a pitch deck to advertisers, showcasing its expanding reach and user base.
Perplexity's introduction of advertisements follows its successful funding round in April, which increased its valuation to over $1 billion, reinforcing its status among AI startups. Nonetheless, the company has faced controversies with media entities such as Forbes and Wired, which have accused Perplexity of plagiarizing content from their websites without appropriate attribution.
Perplexity's new advertising model will adopt a CPM (cost per thousand impressions) pricing strategy, with rates anticipated to exceed $50, surpassing the industry norm. The initial advertising categories will encompass areas like technology, health, finance, and entertainment. Advertisers will be given the chance to sponsor "related questions" beneath AI-generated responses and to position display advertisements adjacent to search outcomes.
Perplexity’s future now hinges on its ability to integrate advertising effectively while continuing to improve its relationship with publishers, as AI-assisted search begins to reshape the digital information Section.
