Get ready for ads in your AI responses

Perplexity AI, an AI-assisted search startup, plans to introduce advertising on its platform in the fourth quarter of this year, following recent controversies over plagiarism allegations. Despite these challenges, the company has experienced significant growth, with its valuation reaching over $1 billion after a recent funding round in April, doubling from just three months prior. Perplexity’s search app has seen a surge in downloads, now exceeding two million, and handles over 230 million queries a month. Concerns remain, however, about how the company uses content from other sources, leading to changes in how it cites these sources in its outputs.

Perplexity commitment to fair content use and monetization for partners

In response to the plagiarism allegations, Perplexity made updates to its citation methods and introduced a revenue-sharing model with publishers, aiming to compensate content creators when their work contributes to the app’s ad-generated revenue. Several prominent media outlets and content platforms have joined this initiative. Dmitry Shevelenko, Perplexity’s chief business officer, emphasized the company’s commitment to fair content use and monetization for partners.

Regarding advertising, Perplexity intends to adopt a cost-per-thousand impressions (CPM) model, with initial rates significantly higher than industry averages for similar digital ads. The company will target several key advertising categories including technology, healthcare, and finance, allowing advertisers to place display ads alongside Perplexity-generated answers and sponsor related questions. This move is part of a broader trend where AI-assisted search technologies are beginning to challenge traditional search engines, reshaping how users access information online.