Perplexity AI plans to introduce advertising in the fourth quarter to profit from AI search

AI SearchcompanyPerplexity The AI company announced plans to launch a new AI-powered search engine on its search app in the fourth quarter of this year.advertiseIt is understood that the Perplexity AI application has been downloaded more than 2 million times and answers more than 230 million queries per month, with the number of queries in the United States increasing eightfold in the past year.

Perplexity AI plans to introduce advertising in the fourth quarter to profit from AI search

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Perplexity AI completed a round of financing in April, with the company's valuation exceeding $1 billion, doubling its valuation three months ago. Last month, Perplexity launched a revenue sharing model, providing publishers with the opportunity to make money through the company's search engine. Every time a user asks a question and Perplexity generates advertising revenue in its answer by citing articles, Perplexity will share a certain percentage of the revenue with the publisher.

Media and content platforms, including Fortune, Times, Entrepreneurs, Texas Tribune, Mirror Weekly and WordPress, were among the first to join the company's publisher programme. In an interview with the CNBC in July, the Chief Commercial Officer of Perplexity, Dmitry Schvelenco, stated that if one answer used three articles from a publisher, partners would receive a “triple share of income”. He said that the company had been developing this function since January, with the goal of 30 publishers joining by the end of the year。

On the advertising side, Perplexity will follow a model called CPM (cost per thousand impressions), according to a person familiar with the matter who asked not to be named because the details are not public. CPM prices will be more than $50. Last year, search engine marketing company Semrush wrote in a blog post that desktop display ads typically have a CPM of about $2.50, while mobile video rates are about $11.10.

In its presentation, Perplexity indicated that its main advertising categories would initially include topics such as technology, health and pharmaceuticals, art and recreation, finance and food and beverages. Advertisers will be able to sponsor `relevant questions' at the bottom of the answer and purchase right or perplexity displays to generate answers。

According to the demonstration, over 80% users of Perplexity have a degree in science, of which 30% is in a “senior leadership position” and 65% is in a “high-income white collar career” such as medical, legal and software engineering。

AI-aided searches are considered to be one of the main risks to Google, as it may change the way consumers receive information online. OpenAI launched ChatGPT at the end of 2022, sparking the generation AI heat, and last month launched a search engine called SearchGPT. In May, Google launched the "AI Overview" in a search, allowing users to see the quick summary answer at the top of the result。

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