Perplexity Pauses New Advertising Deals to Reassess Ambitions

Perplexity has paused accepting new advertisers because it rethinks how advertisements 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 will not be “taking any new advertisers,” and that advertisements 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 Impartial, LA Occasions, and Blavity to its Perplexity’s Writer Program that pays publishers when content material seems subsequent to advertisements. On the time, Chan cited worldwide partnerships as key to Perplexity’s progress.Perplexity launched its advert providing final yr and started 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 the moment, however we didn’t wish to inundate our person expertise with a ton of advertisements in a single day,” Chan stated through the panel. “We’re persevering with to scale it very thoughtfully and methodically—in all probability not on the scale all people’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 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 yr, the corporate generated simply $20,000 in advert income out of $34 million in complete income, in line with The Info.As Perplexity reassesses its advertisements ambitions, questions stay about how a lot income its mannequin is definitely driving for publishers. Two advert patrons advised 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 provide instruments akin to established advert gamers. One writer collaborating in Perplexity’s revenue-sharing program stated the corporate has generated little significant revenue thus far.“The digital enterprise fashions which have confirmed most profitable are performance-based,” stated Debra Aho Williamson, founder and chief analyst, Sonata Insights. “Firms that launched with a model consciousness mannequin like Perplexity have struggled to keep up 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 Publish, the Los Angeles Occasions, Fortune, Le Monde, and Le Figaro. Final month, Perplexity made Comet free to all customers.