Perplexity’s AI search engine, Perplexity, has launched testing advertisements beginning this week. They will appear as sponsored “follow-up questions” next to answers and will be clearly labeled.
Indeed, Whole Foods, and Universal McCann will be among the first advertisers to test these new ad formats; Perplexity’s business development executive has no previous ad sales experience, however.
What is Perplexity AI?
Perplexity AI is an artificial intelligence-powered search engine that enables users to pose questions related to current events, health, shopping recommendations and household tasks. The tool also cites and summarizes answers, making it easier for you to verify information.
Perplexity AI’s platform is free to use for most users, although a pro version is also available for enterprises and other users. Their new ad program seeks to monetize its platform without disrupting search integrity or sharing user data with advertisers; advertisements will appear as “sponsored follow-up questions”, clearly marked and placed next to answers.
Perplexity AI’s launch of ads follows its ongoing struggle to generate sufficient revenue as it expands. Publishers like Dow Jones and The New York Times have filed lawsuits accusing Perplexity AI of content theft; Perplexity AI, however, maintains its content sourcing practices will prioritize originality over copying.
Why is Perplexity AI Experimenting With Ads?
Perplexity AI is introducing ads as part of an effort to monetize its search platform. According to the startup, its current subscription service of Perplexity Pro at $20 monthly or $200 annual is insufficient to fund growth plans and expand revenue-sharing partnerships with publishers.
Advertisers that opt to take part will see sponsored questions displayed alongside AI-generated answers that clearly identify as sponsored. These will not compromise objectivity or accuracy of AI content generation.
Marketers looking to reach highly educated e-commerce consumers, Perplexity’s advertising placement offers marketers an ideal opportunity. Plus, its visual search capabilities – which rival TikTok in terms of engagement capabilities – enable advertisers to match creative assets with product discovery trends. Ads can even be reused for e-commerce as Perplexity has developed a Merchant Program so retailers can share product info with the search engine.
How Will Perplexity AI’s Advertising Strategy Differ From Traditional Search Engine Optimization Practices?
Perplexity AI stands to challenge Google in the search arena with its “answer engine” approach and transparent, fact-based responses. Unfortunately, however, its smaller user base and lack of sophisticated ad formats to convert high-intent users could impede early adoption by advertisers focused on return on investment (ROI).
Perplexity utilizes a large language model to answer questions that pertain to specific topics, recall past searches and provide follow-up queries that build on initial queries. Furthermore, Your Threads saves previous questions so users can revisit them later.
Adopting GEO practices to meet the demands of AI search engines involves crafting content that aligns with how these search algorithms generate results. Adding imagery or videos that align with search algorithms will increase visibility; you must also ensure all your material is accurate with source citations to establish credibility with AI search engines and establish trust.
What Are Perplexity AI’s Initial Advertising Partners?
Whole Foods Market and Universal McCann are among the first advertisers to partner with Perplexity AI on this new advertising approach, representing various industries. Both brands will purchase “related follow-up questions,” which appear beneath initial responses provided by its algorithm but are clearly labeled as sponsored content.
Advertisers will also have the ability to submit questions that will then be answered by the app’s algorithms – this way ensuring users receive impartial responses that don’t favor one company or product over the other.
Still, advertisers may have some reservations about this new advertising model. First off, its price tag may cost seven figures; such an investment would require startups that haven’t established their business models or achieved mass awareness to invest significant sums upfront. Plus there’s the controversy around Perplexity AI; they have been accused of plagiarizing content from several publishers including News Corp’s Dow Jones and The New York Times as well as other publications, who have filed lawsuits against Perplexity AI for plagiarism allegations.