Perplexity, an AI-powered search engine, has recently made headlines with its announcement to sell advertisement space. This move comes as a surprise to many, as Perplexity’s About page states that the search engine was founded on the belief that searching for information should be free from the influence of advertising-driven models. However, Dmitry Shevelenko, Perplexity’s chief business officer, has clarified that advertising has always been a part of their plan to build a successful business.
Perplexity’s plan is to introduce native advertising in related questions, which account for 40% of the search engine’s queries. Alongside organic questions, Perplexity will add relevant brand-sponsored questions, providing advertisers with an opportunity to reach their target audience. Brand safety is a top priority for Perplexity, ensuring that the advertisements displayed are trustworthy and reliable.
Although Perplexity has a smaller user base compared to industry giants like Google and Microsoft Bing, this move could potentially change the game for AI-powered search engines. Monetizing AI search has been a challenge for many companies in the field, and Perplexity’s decision to venture into advertising could pave the way for others to follow suit.
The founder and CEO of Perplexity, Aravind Srinivas, has expressed his vision for advertising on the platform. He believes that ads, when done right, can enhance the user experience and provide valuable insights to advertisers. By utilizing generative AI, Perplexity aims to offer better targeting options for advertisers, allowing them to bid on high-value traffic.
This announcement from Perplexity stands in contrast to OpenAI CEO Sam Altman’s stance on advertising. Altman has been vocal about his dislike for ads and has referred to internet advertising as a “momentary industry.” It will be interesting to see how other companies in the AI search engine space respond to Perplexity’s move.
The details of Perplexity’s advertising plan are still scarce, with the company only stating that it will be introduced in the upcoming quarters. Adweek’s Trishla Ostwal covered this development in an article titled “Gen-AI Search Engine Perplexity Has a Plan to Sell Ads,” shedding light on the potential impact of Perplexity’s decision.
As the AI search engine landscape continues to evolve, Perplexity’s foray into advertising could signal a shift in the industry. With its focus on brand safety and providing a straightforward user experience, Perplexity aims to strike a balance between monetization and user satisfaction. Only time will tell if other players in the field will follow Perplexity’s lead or if they will stick to their ad-free principles.
