news
Perplexity claims that the decision to display advertisements will enable it to make money and distribute it to its publisher partners.
The artificial intelligence (AI) search platform’s creator, Perplexity AI, said on Tuesday that it will start testing advertisements this week. An earlier report highlighted the company’s plans of incorporating ads by the end of the year to boost its revenue. According to the AI company, advertisements will be displayed in a way that does not interfere with or detract from the platform’s user experience. It also made clear that all advertisements will be identified as sponsored in order to alert users when they are being shown.
How Perplexity Is Going to Display Advertisements in Search Results
In a blog post, the AI-powered search engine shared details of how it plans to implement ads on the service. Perplexity asserts that it will not replicate the SEO industry’s “arbitrary tactics to improve their rankings at the expense of user utility” and will instead display advertisements in a “transparent” format that piques users’ interest in 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 company also made it clear that when a user clicks on the sponsored question, Perplexity’s AI will be used to produce an authentic response rather than the brand writing or editing it.
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. Perplexity intends to begin testing its ads this week, but only US-based users will see them.
Perplexity says that the move to show ads will allow it to generate revenue and share it with its publisher partners. Perplexity compensates affiliated publishing houses for using their data and articles to create query answers.
We have learnt from experience that subscriptions by themselves do not bring in enough money to support a long-term revenue-sharing scheme. Advertising is the best way to guarantee a consistent and scalable revenue stream, particularly considering how quickly our publisher programme is expanding,” Perplexity continued.