- Perplexity introduces innovative “sponsored follow-up questions” ad format
- Platform acknowledges subscriptions alone cannot support publisher partnerships
- Company faces monetization pressure amid legal challenges and funding needs
Novel Ad Strategy
Perplexity introduces advertising through “sponsored follow-up questions” format in U.S. market, partnering with major brands including Indeed, Whole Foods, and Universal McCann. The AI search engine maintains editorial independence, generating answers through AI rather than sponsored content.
Revenue Diversification Challenge
Company acknowledges subscription model limitations in supporting publisher revenue sharing, marking significant shift from competitors. While OpenAI’s ChatGPT Search remains ad-free and Microsoft’s Bing abandoned sponsored results, Perplexity positions its ad platform as premium alternative targeting high-income, educated consumers.
Legal and Growth Pressures
Initiative launches amid ongoing legal challenges from News Corp’s Dow Jones and NY Post over alleged content plagiarism. Platform serves 100 million weekly queries and reportedly seeks $500 million funding at $9 billion valuation, highlighting urgent need to expand beyond Pro subscription revenue.
