Perplexity has paused accepting new advertisers because it rethinks how adverts match into its AI search expertise, signaling a change in its monetization push.
At Promoting Week in New York Metropolis, Jessica Chan, head of writer partnerships at Perplexity, stated that the corporate just isn’t “taking any new advertisers,” and that adverts aren’t at present on the roadmap for Perplexity’s AI browser, Comet.
The transfer comes after the August departure of advert gross sales head Taz Patel, signaling a shift from Perplexity’s earlier plan to scale its advert enterprise past the U.S. In December, Perplexity added The Unbiased, LA Occasions, and Blavity to its Perplexity’s Writer Program that pays publishers when content material seems subsequent to adverts. On the time, Chan cited worldwide partnerships as key to Perplexity’s development.
Perplexity launched its advert providing final 12 months and commenced testing campaigns with manufacturers together with Certainly, PMG, Common McCann, and Entire Meals Market. These early campaigns let manufacturers sponsor follow-up questions in search outcomes.
“That also exists at this time, however we didn’t need to inundate our consumer expertise with a ton of adverts in a single day,” Chan stated in the course of the panel. “We’re persevering with to scale it very thoughtfully and methodically—in all probability not on the scale everyone’s hoping for.”
She additionally famous that manufacturers are rethinking easy methods to spend their budgets. Chan stated many advertisers are transferring away from performance-focused, conventional search and in the direction of top-of-funnel model consciousness—an space Perplexity might pursue down the road.
Perplexity didn’t reply to request for added remark past Chan’s feedback at Promoting Week.
Promoting seems to make up solely a small portion of Perplexity’s income. Final 12 months, the corporate generated simply $20,000 in advert income out of $34 million in complete income, in keeping with The Data.
As Perplexity reassesses its adverts ambitions, questions stay about how a lot income its mannequin is definitely driving for publishers.
Two advert patrons instructed ADWEEK that they’ve struggled to measure efficiency metrics like click-through charges and return on advert spend on Perplexity as a result of the platform doesn’t supply instruments akin to established advert gamers. One writer collaborating in Perplexity’s revenue-sharing program stated the corporate has generated little significant revenue to this point.
“The digital enterprise fashions which have confirmed most profitable are performance-based,” stated Debra Aho Williamson, founder and chief analyst, Sonata Insights. “Corporations that launched with a model consciousness mannequin like Perplexity have struggled to take care of momentum.”
Individually from promoting, Perplexity continues to construct out its ecosystem round its internet browser Comet. Perplexity describes Comet as a browser for “trusted publishers and journalists” together with CNN, Condé Nast, The Washington Submit, the Los Angeles Occasions, Fortune, Le Monde, and Le Figaro. Final month, Perplexity made Comet free to all customers.
