Artificial intelligence startup Perplexity AI, backed by Amazon founder Jeff Bezos, is planning to overturn Google's dominance of the digital advertising market. The company is in talks with well-known brands such as Nike and Marriott and plans to launch an innovative "sponsored Q&A" advertising system before the end of the year, a move that may reshape the search engine advertising model. The editor of Downcodes will give you an in-depth understanding of Perplexity AI’s bold attempt and the opportunities and challenges it faces.
Recently, the attention-grabbing artificial intelligence startup Perplexity AI, which has received support from Amazon founder Jeff Bezos, is negotiating with a number of well-known brands, including Nike and Marriott International, and plans to launch a "sponsored Q&A" before the end of the year. ” advertising system. The goal of the system is to disrupt Google's dominance of the $300 billion digital advertising market.
Based in San Francisco, Perplexity AI is developing a new advertising model that allows brands to bid on "sponsored questions" and receive AI-generated answers that have been reviewed by the advertiser. This means that when users search using Perplexity, they will see brand-related questions and their answers, thereby increasing the brand's exposure.
Perplexity CEO Aravind Srinivas said the effectiveness of ads lies in their relevance and the quality of the brand. He hopes that this new advertising system can become a "money printing machine" to create more value for brands.
The system plans to market with a CPM of more than $50, which is more attractive than Google's CPM of about $1,100.
According to reports, Perplexity successfully raised funds in April this year and its valuation has exceeded US$1 billion, making it a unicorn company. Revenue and usage have grown 700% since the beginning of the year, and the AI-powered search engine answered about 250 million questions in the most recent month, up from 5 million for all of last year.
However, Perplexity has also faced some controversy. Forbes and Wired have previously accused the company of plagiarism, saying it copied articles without proper authorization and accessed sites specifically blocked from their crawlers. Perplexity acknowledged the accusations and said it had updated its user interface to more clearly highlight quotes and adjusted its system to avoid summarizing content from these sites.
Highlight:
Perplexity AI is in talks with Nike and Marriott to launch a new "Sponsored Q&A" advertising system.
? The new advertising system’s charging standards will be much lower than Google’s and is expected to attract more brands to participate.
Since the beginning of the year, Perplexity has grown usage and revenue 700%, becoming a unicorn company valued at over $1 billion.
Perplexity AI’s “Sponsored Q&A” advertising system, with its low price and innovative model, is expected to carve out a niche in the highly competitive digital advertising market. However, the company will need to continue improving and resolving the controversies it faces before it can ultimately achieve its ambitious goals. Let’s wait and see if Perplexity AI can successfully challenge Google’s dominance.