Perplexity, the self-described “AI search engine” or “answer engine,” has quickly gained traction in the generative AI space with its unique approach to online search. Unlike traditional search engines, which rely on a list of web links for users to explore, Perplexity aims to provide direct, conversational answers to user questions, citing sources to enhance trust and transparency. Since the beginning of 2023, Perplexity has seen significant growth, with a sevenfold increase in its user base and a valuation that has now reached $3 billion.
In a bold move, Perplexity has now introduced advertising, focusing initially on questions as its debut ad format. This strategy reflects an ambition to capture meaningful ad revenue by engaging users in a discovery-oriented environment. However, with a different approach from giants like Google, Perplexity still faces significant hurdles in the ad space as it seeks to define its role among established players.
1. User Appeal: What Sets Perplexity Apart?
Perplexity’s appeal lies in its simplicity, …