Perplexity AI, an artificial intelligence startup, has recently come under fire for accusations of plagiarizing content from various media outlets. This controversy has raised concerns about the company’s practices and ethics, particularly in relation to how it sources and presents information to its users. Reports from Forbes and Wired highlighted instances where Perplexity was found to have published plagiarized versions of articles without proper attribution to the original sources. These allegations have brought negative attention to the company and cast doubt on its credibility in the industry.
Expanding Reach Through Advertisements
Despite the controversy, Perplexity AI is forging ahead with plans to monetize its search app through advertisements. The company aims to start running ads on its platform in the fourth quarter, as revealed by sources familiar with the matter. In a pitch deck circulating among potential advertisers, Perplexity touts its impressive user base, with over two million downloads and 230 million monthly users. The presentation also highlights a significant increase in U.S. queries over the past year, indicating growing popularity and engagement with the app.
In an effort to address concerns and garner support from publishers, Perplexity recently introduced a revenue-sharing model for its search engine. Under this program, publishers are given the opportunity to earn money when their articles are cited in Perplexity’s search results. The company has already onboarded several prominent media outlets and content platforms, including Fortune, Time, and Entrepreneur, to participate in the program. Dmitry Shevelenko, Perplexity’s chief business officer, mentioned in an interview that publishers can earn a percentage of the ad revenue generated from their content being cited in user queries.
Perplexity’s advertising strategy revolves around a CPM (cost per thousand impressions) model, with prices set to exceed $50 per thousand impressions. This pricing scheme positions the company’s ad space as premium real estate for advertisers looking to reach a well-educated and affluent audience. According to data from Perplexity’s pitch deck, the platform’s users are predominantly highly educated individuals in senior leadership positions across various industries. The key advertising categories initially identified by the company include technology, health, finance, arts, and entertainment, catering to the interests of its user base.
The emergence of AI-assisted search technologies, such as Perplexity AI and OpenAI’s SearchGPT, has created a competitive landscape in the search engine market. Investors and industry observers see AI-powered search as a potential disruptor to traditional search engines like Google, as it offers users a more intuitive and conversational way to find information online. Google, in response to this trend, has introduced its own AI enhancements to search results, including AI Overviews that provide quick summaries of answers at the top of search results.
As Perplexity AI navigates through the controversy surrounding its alleged plagiarism practices, the company’s foray into advertising and revenue sharing represents a significant step towards monetization and industry legitimacy. By cultivating partnerships with publishers and offering a lucrative ad platform, Perplexity aims to capitalize on its growing user base and expand its presence in the competitive AI search market. The success of its advertising efforts and the adoption of its revenue-sharing model will be critical factors in determining the company’s future trajectory.