Perplexity says that the move to show ads will allow it to generate revenue and share it with its publisher partners.
Perplexity said its ad format will “encourage users to express their curiosity about a brand”
Perplexity AI, the company behind the eponymous artificial intelligence (AI) search platform, announced on Tuesday that it will begin experimenting with ads this week. An earlier report highlighted the company's plans of incorporating ads by the end of the year to boost its revenue. The AI firm says that ads will be shown in a format that does not clutter or ruin the user experience of the platform. Additionally, it highlighted that all ads will be marked as sponsored to inform users when an ad is being displayed.
In a blog post, the AI-powered search engine shared details of how it plans to implement ads on the service. Claiming that it will not duplicate the SEO industry's use of "arbitrary tactics to improve their rankings at the expense of user utility”, Perplexity says it will instead show ads in a format that is “transparent” and generate a user's curiosity about a brand.
How ads will appear on Perplexity's platform
Photo Credit: Perplexity
Perplexity will display ads as “sponsored follow-up questions” and “paid media” on the side of an answer. The ads will include a question that directly delves into the brand's offerings. The AI firm also highlighted that if a user clicks on the sponsored question, the response will not be written or edited by the brand, and instead Perplexity's AI will be used to generate an authentic answer.
The company also revealed that Indeed, Whole Foods Market, Universal McCann, and PMG are its initial brand partners, and users can expect to see ads from these firms in the coming days. While Perplexity plans to start its ad tests this week, they will only be shown to users residing in the US.
Perplexity says that the move to show ads will allow it to generate revenue and share it with its publisher partners. Perplexity pays partnering publishing companies to use their articles and data to generate response to queries.
“Experience has taught us that subscriptions alone do not generate enough revenue to create a sustainable revenue-sharing program. Especially given how rapidly our publisher program is growing, advertising is the best way to ensure a steady and scalable revenue stream,” Perplexity added.
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