Perplexity AI, the artificial intelligence startup supported by Jeff Bezos and Nvidia, intends to launch advertising on its AI-powered search engine. The AI search engine is set to launch advertisements in ’15 key categories.’ Last month, the AI startup launched a program for publishers, with an initial batch of partners including TIME, Der Spiegel, and Fortune, in which it intends to share revenue from interactions involving a publisher’s content.
In its pitch deck, Perplexity stated that its primary advertising categories would first cover subjects like technology, medicine and health, entertainment and the arts, finance, and food and drink. In addition to purchasing display ads to the right or an answer generated by Perplexity, advertisers will have the option to sponsor “related questions” beneath answers.
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Perplexity AI doubled its valuation to over $1 billion in April after raising $62.7 million from investors such as Nvidia, Brad Gerstner of Altimeter Capital, and Garry Tan of Y Combinator. With the launch of its revenue-sharing model last month, Perplexity allowed publishers to monetize their search engines. Perplexity will split a portion of the money it makes from cutting an article in an answer to a question from a user with the publisher whenever that happens.
Major search engines have been attempting to incorporate artificial intelligence (AI) into web searches since the November 2022 launch of ChatGPT. Analysts have seen AI-assisted search as a threat to Google’s dominant position in the industry since the beginning of the AI boom. With its early investment, Microsoft has integrated OpenAI technology into its Bing search engine, and at its May developer conference, Google unveiled AI-powered summaries for a broader audience.
Perplexity will use the cost per thousand impressions (CPM) model for advertising, according to a person with knowledge of the situation who wishes to remain anonymous because the information is private. Prices for CPM will exceed $50, according to the source. In a blog post from the previous year, search marketing company Semrush stated that mobile videos have CPMs of roughly $11.10, while desktop display ads usually have CPMs of about $2.50.
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