Perplexity, the AI-powered search engine startup, says it is adding ads to its platform in an effort to build a sustainable revenue model. Starting this week, U.S. users will begin to see ads in the form of "sponsored follow-up questions," clearly labeled and positioned alongside search answers.
Why it matters: Ads are Perplexity's answer to financial pressures. With over 100 million weekly search queries, the company wants to diversify its revenue streams beyond subscriptions to sustain growth and support publisher partnerships.
Details: Perplexity's ads are designed to blend seamlessly into its user experience. They come as follow-up questions like "How can I use LinkedIn to enhance my job search?", but the answers will still be fully generated by AI—no editing or influence from advertisers. Brands participating in the ad program include Indeed, Whole Foods, Universal McCann, and PMG.
- The ads will be labeled as "sponsored" and positioned to the side of search results.
- Perplexity emphasized it will not share users' personal information with advertisers.
- The company's blog post insists these ads won’t impact the accuracy or objectivity of its search answers.
Zoom out: As Perplexity tries to balance monetization with maintaining a user-focused experience, it faces challenges. Rival platforms like OpenAI have opted out of ads, while Google's AI search tool has only cautiously experimented with them. Perplexity, however, sees ads as the key to sharing revenue with publishers and scaling its business.
The big picture: The advertising shift comes amid rising pressure for Perplexity to monetize its growing platform effectively. The company is reportedly closing in on a $500 million funding round at a $9 billion valuation, highlighting its need for a more diversified revenue model. Until now, its primary income came from Perplexity Pro, a subscription service offering premium features for $20 per month.
What’s next: This is an experiment for Perplexity. The company says formats may evolve, but promises to stick to two core principles: preserving unbiased search results and safeguarding user privacy.
Perplexity is inviting users to provide feedback as it explores this new territory, positioning ads as a way to strengthen, not compromise, the trusted search experience they aim to deliver.