AI Startup Perplexity Unveils Plans to Sell Ads
AI startup Perplexity has unveiled plans to run ads on its search app in quarter four of this year. Perplexity AI ads plan has been embroiled in controversy after media outlets accused it of plagiarizing content.
According to CNBC, the company will start selling ads while generating AI-assisted search results for users.
AI-Assisted Search
Perplexity specializes in providing AI-supported search. This strategy allows it to increase usage and promotes the app to increase reach. In April this year, the AI startup raised funds that doubled its valuation to over $1 billion.
According to Perplexity, the AI search app has been downloaded over 2 million times. It responds to more than 230 million queries each month. In the past year, queries from US users have increased eight times.
Content Concerns
Perplexity’s popularity has raised concerns about how it searches and presents content from other sources. In June this year, Forbes reported that Perplexity had plagiarized its content.
Forbes said it found one of its stories on the app with no reference except a tiny ‘F’ logo at the end of the page. A few weeks later, Wired raised a similar concern. The media outlet said it had evidence that Perplexity was plagiarizing its stories.
Following the allegations, Perplexity adjusted the way it cites sources and made updates to ensure responses cite media outlets directly in generated content.
Revenue Program
Perplexity introduced a revenue-sharing model last month. This model allows publishers to earn money when they use its search engine. The company says every time a user asks a question on its app, and Perplexity gets AI-assisted search ad revenue for citing articles in its answer, a percentage of that revenue will be shared with the publisher.
Content platforms and media outlets like Entrepreneur, Fortune, Der Spiegel, The Texas Tribune, and Time were among the first to sign up for Perplexity’s Publishers Program. Back in July, Perplexity’s Chief Business Officer Dmitry Shevelenko said publishers would receive triple the revenue share if three of their articles appeared in a single answer.
The company’s goal is to enroll at least 30 publishers by the end of 2024.
Perplexity AI ads will leverage the cost per thousand impressions (CPM) model with prices surpassing the $50 mark. In its pitch deck, Perplexity plans to focus on a range of ad categories. These include health, tech, art, finance, pharmaceuticals, entertainment, and food and beverage.
Advertisers can sponsor related queries below the search responses and purchase display ads. Perplexity says 80% of its users have undergraduate degrees, 65% are high-income professionals, and 30% hold senior leadership positions.
