AI startup Perplexity has announced plans to experiment with advertisements on its platform. This initiative will initially roll out in the United States and aims to position Perplexity alongside Google and Microsoft in the growing market for monetised AI search tools.
Perplexity’s new ad format, termed ‘sponsored follow-up questions,’ will appear beside search answers and be marked as ‘sponsored.’ Advertisers will ask users questions about their offerings, such as ‘How can I use LinkedIn to enhance my job search?’
Perplexity notes that its AI will still generate the actual answers, maintaining a promise of objectivity and user privacy. The company asserts that advertisers will not influence the content and tone of answers.
“Advertising material will be clearly noted as “sponsored,” and answers to Sponsored Questions will still be generated by our technology, and not written or edited by the brands sponsoring the questions,” Perplexity clarified.
Perplexity says advertising is essential for building a self-sustaining business model that doesn’t solely rely on subscriptions. Furthermore, introducing ads also provides brands with a structured and transparent way to reach audiences without falling into the pitfalls of traditional SEO practices.
“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,” the company explained.
Perplexit’s initial ad partners include well-known brands like job site Indeed, grocery chain Whole Foods, and advertising agencies Universal McCann and PMG.
Perplexity also plans to share the revenue with publishers, thereby saving itself from lawsuits. In October 2024, Dow Jones and the New York Post sued Perplexity over copyright violations. In response to the allegations, Perplexity issued a harsh statement stating that the media companies are fundamentally resistant to the very existence of AI technology.
Perplexity’s ad experiment reflects a broader trend among AI platforms exploring monetisation. Google, for instance, recently began testing ads on its AI search platform, AI Overviews, focusing on mobile users in the US.
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