Perplexity Begins Testing Ads to Boost Growth
%20(4).jpg "Perplexity Begins Testing Ads to Boost Growth")
Perplexity, the AI-powered search tool, has started testing advertisements on its platform this week as it searches for sustainable ways to grow and keep up with demand. This move marks a big step for Perplexity, which aims to find a balance between offering a quality user experience and staying financially viable.
In late August, Perplexity announced it was considering ads, with a plan to launch them in categories like Finance and Technology by Q4. Now, as of a November 12 blog post, Perplexity confirmed that these ads will soon start appearing for U.S. users in the form of “sponsored follow-up questions.” Each of these will be clearly marked as “sponsored,” making it clear that they are advertisements, not organic responses. This approach helps Perplexity avoid the trap of SEO-driven content that ranks higher without adding real value to users.
Instead of letting ads manipulate the search results, Perplexity wants to take a more transparent approach. By presenting ads as curiosity-driven follow-up questions, Perplexity hopes to encourage users to explore new brands naturally. The company stresses that these ads won’t interfere with the quality of its responses and that no personal data will be shared with advertisers—a key reassurance for users who are protective of their privacy.
A New Phase for Perplexity Amid Funding Needs
While the ads are only a test phase for now, Perplexity hopes they’ll become a reliable revenue source. Currently, the platform relies heavily on its $20-a-month premium subscription, but as it eyes a $500 million funding round, additional income streams are essential. The platform’s ad program includes partners like Universal McCann, PMG, Indeed, and Whole Foods, marking its first step toward broader ad-based monetization.
The AI search landscape is heating up as major competitors like Google have also started experimenting with ads in their AI-powered search feature, called AI Overviews. Unlike Google, however, OpenAI has opted out of ads in its ChatGPT Search, keeping the competition alive for ad-free options.
With growth pressures mounting, Perplexity is in a crucial phase, and if its ad testing proves successful, it could create a sustainable path forward that both keeps users engaged and brings in necessary funding. For now, users can expect to see some carefully placed sponsored content, with the assurance that the core user experience will remain intact.
%20(4).jpg&description=Perplexity Begins Testing Ads to Boost Growth){kind=link}