Introduction Perplexity AI, an AI-powered search app, has recorded an extraordinary growth in user engagement, processing 20 million daily queries. This significant increase from the 2.5 million queries at the start of the year indicates a profound change in digital search habits. Aravind Srinivas, the Cofounder and CEO of Perplexity, introduced the term “Plexing” on LinkedIn to describe this new reliance on the platform for various queries.
Enhanced User Experience with AI
Earlier this year, Perplexity launched an AI-powered shopping assistant, integrating with platforms such as Shopify. This tool has improved the shopping experience by providing timely and relevant product information, primarily benefiting Shopify-based U.S. businesses. Following its success in the U.S., there are plans to expand this service to additional markets, aiming to transform the e-commerce search experience further.
Innovative Advertising Strategies
In November, Perplexity announced its experimentation with advertising, intending to build a robust and self-sustaining business model. The company emphasized that the quality of responses provided to users would not be compromised by advertisements. Initially, ads will be displayed in the U.S., formatted as sponsored follow-up questions and side-positioned paid media. This approach aims to maintain transparency and encourage user curiosity without manipulating the search results.
Commitment to Ethical Advertising
Perplexity’s strategy involves offering a transparent advertising option that avoids the pitfalls of traditional SEO tactics, which can degrade user experience by prioritizing rankings over utility. The company’s blog stated their focus on providing a fair platform for brands to engage with users, enhancing the overall user experience rather than disrupting it.
Sustainable Revenue Generation
The introduction of advertisements is part of a broader strategy to generate revenue necessary for a sustainable business. Perplexity acknowledged that subscription models alone are insufficient for maintaining a viable revenue-sharing program with publishers, especially with the rapid expansion of their publisher program. Advertising is seen as the most effective method to ensure a stable and scalable source of income.
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