- Perplexity AI will launch advertising on its AI-driven search platform by the fourth quarter, aiming to monetise interactions with publisher content.
- This move reflects the growing competition in AI-assisted search engines, posing a challenge to Google’s market dominance.
OUR TAKE
As new players enter the market, established giants like Google must continue to innovate to stay ahead. The launch of Perplexity AI ads is a major shift in the AI search space. This development can enhance the user experience through customised ads while also providing huge revenue opportunities for publishers.
–Lily,Yang, BTW reporter
What happened
Perplexity AI, backed by Jeff Bezos and Nvidia, announced plans to launch advertising on its AI search platform by the fourth quarter. The startup recently launched a program for publishers, including Time and Der Spiegel, to share revenue generated by content citations.
Since the launch of ChatGPT in November 2022, AI fever has begun to take off, and major search engines are committed to integrating AI. Perplexity AI raised $62.7 million in funding in April, doubling its valuation to more than $1 billion.
Also read: Is Perplexity AI good?
Also read: How Perplexity AI works: Unveiling the technology
Why it’s important
This news reveals that emerging AI companies like Perplexity AI are challenging established search engine leaders. It is worth noting that there have been major developments in digital advertising and search capabilities.
By incorporating advertising into its platform, Perplexity AI has not only diversified its revenue streams, but also increased competition in the search industry. The support of well-known investors shows confidence in its business model.
This news has far-reaching implications and may lead to innovative features in search technology that benefit both users and publishers.
