Perplexity AI Introduces Innovative Ad Format in Search Results

Perplexity gets creative with its first round of AI-powered search ad monetization

Arm's senior VP explains AI's true impact, and it's not what you think Key Takeaways Perplexity integrates AI-generated ads into search results through sponsored follow-up questions. Perplexity says these ads will not influence search results and the company remains committed to providing unbiased answers to queries. Partnership with brands like Whole Foods & Indeed helps monetize the search engine. ✕ Remove Ads It turns out you can't get away from ads, no matter where you go on the internet. Perplexity, the AI-powered search engine hoping to supplant Google for internet searches, got a taste of that sweet ad money and decided it likes it. Related I've mostly dumped Google Search for the smarter Perplexity and ChatGPT AI (not Google's) for the win! Perplexity announced its first foray into ad monetization today (via TechCrunch). The ads are part of an experiment Perplexity is conducting with 'sponsored questions.' These appear as suggested follow-up questions to a query, and some of them are paid placements. The company assures users that these ads will not impact the impartiality of search results, and that these sponsored questions are clearly marked. ✕ Remove Ads They finally figured out how to slip ads into AI Source: Perplexity.ai There are actually two types of ad placement in the new Perplexity search results. There are sponsored follow-up questions and side-positioned paid media. For example, if a user searches for a job on Perplexity, a related sponsored question could be "How can I use LinkedIn to enhance my job search?" A side-positioned paid media spot is an ad placed to the side of the main content, likely in a designated area or panel. It's basically the tried-and-true banner ad that has been around the internet since the 1990s. Perplexity says these ads are generated solely by the company's AI, and advertisers cannot edit or influence the content. Perplexity believes this ad structure allows brands to reach audiences without compromising the platform's objective answers. ✕ Remove Ads Ads follow hot on the heels of AI search Related Uber Eats just gave me a year of Perplexity Pro -- it may do the same for you too Claim your unexpected perk 1 Google is the king of search result ads. Microsoft tries, and is experimenting with different ways to provide ad-supported AI tools, with sponsored results in the Bing chatbot. Perplexity is taking a different route. The company hopes partnerships with brands like Whole Foods and Indeed will provide the ad revenue it needs without affecting its search results. Perplexity's experiment is ongoing in the US-only. Whether it builds a sustainable revenue model without altering its core mission of delivering unbiased and high-quality answers remains to be seen. As the company gets more popular, ad money is sure to begin to influence its corporate decisions. Just look at what happened to Google. ✕ Remove Ads

Perplexity to introduce sneaky ads alongside its AI answers

It was only a matter of time. "Answer engine" startup Perplexity AI announced on Wednesday that it will begin experimenting with inserting advertisements into its chatbot responses starting next week. Rather than a standard ad you might be familiar with, however, the platform will instead start showing ads to users in the U.S. in the form of "sponsored follow-up questions and paid media positioned to the side of an answer," from the company's advertising partners. Those include Indeed, Whole Foods, Universal McCann, and PMG. "Ad programs like this help us generate revenue to share with our publisher partners," the company wrote in a Wednesday blog post. "Experience has taught us that subscriptions alone do not generate enough revenue to create a sustainable revenue-sharing program ... advertising is the best way to ensure a steady and scalable revenue stream." Recommended Videos The startup is quick to point out that all sponsored answers will be clearly labeled as such and that the answers themselves will still be generated by its model, not written or edited by the partner companies themselves. "We intentionally chose these formats because it integrates advertising in a way that still protects the utility, accuracy and objectivity of answers," the company wrote. "These ads will not change our commitment to maintaining a trusted service that provides you with direct, unbiased answers to your questions." Perplexity's experimentation comes as the company faces increased competition from OpenAI, which recently released its similar SearchGPT feature, as well as multiple lawsuits over allegations that the company's data scraping practices amount to copyright infringement on a "massive scale." Perplexity has also been served cease-and-desist letters from both The New York Times and Conde Nast over its behavior. Whether advertisers will be willing to overlook those glaring issues remains to be seen. If not, then Perplexity may be limited to its sole existing income source: its $20/month Perplexity Pro subscription.

Perplexity AI Will Soon Start Showing Ads on Its Search Platform

Whole Foods Market and PMG are among Perplexity's initial ad partners 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. 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.

Perplexity brings ads to its platform | TechCrunch

AI-powered search engine Perplexity says it'll begin experimenting with ads on its platform starting this week. Ads will appear in the U.S. to start, formatted as "sponsored follow-up questions." (E.g., "How can I use LinkedIn to enhance my job search?") Paid media will be positioned to the side of answers, and labeled as sponsored. Brands and agency partners participating in Perplexity's ad program include Indeed, Whole Foods, Universal McCann, and PMG. "Ad programs like this help us generate revenue to share with our publisher partners," Perplexity writes in a post on its blog. "Experience has taught us that subscriptions alone do not generate enough revenue to create a sustainable revenue-sharing program. [A]dvertising is the best way to ensure a steady and scalable revenue stream." Perplexity asserts that answers to "sponsored questions" will still be generated by its AI -- not written or edited by the brands sponsoring the questions. Advertisers also won't get access to users' personal info, the company says. "We intentionally chose these formats because it integrates advertising in a way that still protects the utility, accuracy, and objectivity of answers," the blog post reads. "These ads will not change our commitment to maintaining a trusted service that provides you with direct, unbiased answers to your questions." Perplexity's embrace of ads stands in contrast to OpenAI's decision not to launch its AI-powered search tool, ChatGPT Search, with ads. But rival Google has similarly piloted ads in its AI search experience, AI Overviews, recently bringing ads to mobile in the U.S. for certain queries. Perplexity is said to be marketing its ad products as a premium alternative to Google's, emphasizing its platform's ability to reach educated, high-income consumers. But some analysts have expressed concerns about the scale, reach, and targeting capabilities of ads on Perplexity. Perplexity's plagiarism accusations are another advertiser concern. News Corp's Dow Jones and the NY Post have sued Perplexity over what they describe as a "content kleptocracy." Many other news sites have shown evidence that Perplexity closely replicates their content -- just last month, The New York Times sent the startup a cease and desist.

Perplexity is starting its ads experiment this week.

The AI-powered search engine will begin with showing labeled ads formatted as "sponsored follow-up questions" that will appear next to answers in the US. TechCrunch reports: "Perplexity's embrace of ads stands in contrast to OpenAI's decision not to launch its AI-powered search tool, ChatGPT Search, with ads. But rival Google has similarly piloted ads in its AI search experience, AI Overviews -- recently bringing ads to mobile in the U.S. for certain queries"