Perplexity plans to incorporate sponsored responses and is already in talks with brands

Jane Anderson
Jane Anderson
Perplexity plans to incorporate sponsored responses and is already in talks with brands

The artificial intelligence platform Perplexity plans to introduce sponsored answers in the fourth quarter of this year, according to various American media reports. The company is already in talks with big brands, such as Nike or Marriott, for the launch of this advertising proposal.

Perplexity’s intention is to be at the head of the world.new step of digital advertising. And as consumers adopt the use of artificial intelligence engines for their information searches and other actions, digital advertising as we knew it until now will find a new window.

Advertising on Perplexity would be a rival to Google, which has been working on its own formula for some time

The promotion of an advertising model by Perplexity is understood as a movement to stand up to Google, which has been working for some time on including sponsored responses in its search results based on artificial intelligence.

According to Financial TimesUnlike the Mountain View firm’s system, in which advertisers bid to have a sponsored link next to the search results, Perplexity intends to implement an alternative model. Thus, taking into account that its platform offers a unified response to user queries and includes links to web pages that it uses as a source, the company wants provide suggested follow-up consultations. In this way, brands could bid on a sponsored question that would display an AI-generated answer previously approved by the advertiser.

Furthermore, according to reports CNBCadvertisers could also have the option to purchase display ads on the right side of the answer.

The way to monetize these ads will be through a CPM model (cost per thousand impressions), with prices around $50 per thousand impressions generated. As explained CNBC, Perplexity aims to include a number of key advertising categories, such as technology, health, financial products, arts and entertainment or finance.

Perplexity’s goal would be to launch this advertising model at the end of the year and to this end it has already established conversations with prominent brands, among which would be Nike and Marriott, among others. However, the success of your advertising model, and therefore your ability to attract advertisers, will depend on the scale that the ads reach.

The company assures that in July they carried out 230 million queries on its platform, compared to the 500 million queries delivered throughout last year. He also says that in the last year alone, consultations carried out in the United States have multiplied by eight.

Currently, Perplexity’s main monetization formula is through subscription. Its premium plan is priced at $20 per month; and its revenue has grown from $5 million in January to $35 million in August.