AI-based search engines continue to evolve, and this time it’s Perplexity that’s making headlines. The competitor of SearchGPT and Gemini announces the introduction of advertisements on its platform, a decision which marks a turning point in its monetization strategy. An initiative that raises questions about the balance between profitability and user experience in the world of conversational AI.
An advertising approach different from others
Perplexity, the search engine powered by artificial intelligence, is taking a new step in its development by introducing advertisements to its platform. The experiment begins this week in the United States with an original format: “sponsored follow-up questions” which will appear alongside the answers generated by the AI. For example, a question like “How can I use LinkedIn to improve my job search?” could be sponsored by Indeed, one of the program’s first partners alongside Whole Foods and agencies such as Universal McCann and PMG in the United States.
This initiative is part of a broader monetization strategy, as Perplexity currently processes around 100 million requests per week. The company, which is reportedly on the verge of raising $500 million for a valuation of $9 billion, has until now had only one source of revenue: its premium Perplexity Pro service at 18 euros per month. For iPhone and iPad users, this development could be reminiscent of the gradual introduction of advertising in the Apple App Store, which was able to strike a balance between monetization and user experience – although Apple does not not absolutely necessary.
Between controversies and innovation
Perplexity claims that answers to sponsored questions will remain generated by its AI, without intervention from advertisers, and that advertisers will not have access to users’ personal data. This approach differs from that of OpenAI, which has not integrated advertisements into ChatGPT Search, but is closer to Google which is experimenting with advertisements in its AI Overviews service.
The startup also faces accusations of plagiarism, notably from News Corp and the New York Times, which could hold back some advertisers. A situation which is reminiscent of the debates around the use of content protected by AI models from Apple and other tech giants. New players in generative AI are looking for a viable economic model at a time when advertising is increasingly criticized.
Apple, having adopted a (for the moment) free and mostly on-device model, has arguments to put forward. What if Cupertino launched its own search engine? The question seems to be asked more and more.
