Sports advertising is widely recognized as a key channel for businesses to promote their brands. To maximize your company’s visibility at the ADWEEK Brand Play: A Sports Marketing Summit, consider registering promptly for the event taking place in New York City or online on May 9.
Perplexity, a self-proclaimed competitor of Google, recently secured a substantial $73 million Series B funding round, with notable investors such as Jeff Bezos. The company announced its foray into the advertising realm to ADWEEK.
Utilizing Artificial Intelligence to respond to user inquiries sourced from web data, Perplexity integrates information from partners like Google into its responses, often including source links for further exploration. Notably, the company plans to introduce native advertisements within responses to approximately 40% of user queries, allowing brands to curate these responses, as revealed by Dmitry Shevelenko, the firm’s chief business officer.
As users delve deeper into topics, Perplexity’s AI search engine may pose both sponsored and organic questions, blending brand messaging seamlessly into the user experience.
While Shevelenko refrained from disclosing specific timelines, hinting at forthcoming developments, marketing has always been a strategic component of Perplexity’s business model, despite its initial stance on advertising independence.
Founded by AI experts from Meta and OpenAI, the year-old search engine leverages OpenAI’s custom AI architecture and GPT model, offering a subscription-based service priced at $20 per month.
Industry experts view Perplexity’s integration of local ads as a non-intrusive format that aligns well with the platform’s user experience, potentially fostering user engagement and brand recognition.
However, Perplexity faces challenges in ensuring product safety, market exposure, and targeting efficacy to sustain its growth trajectory. With a target of over 10 million active users monthly by January, the search engine must prioritize relevance and user experience in sponsored content, as highlighted by Matt Larson from Collective Measures.
Maintaining brand safety and clarity is paramount for advertisers, who seek to avoid association with irrelevant or potentially harmful content. David Shapiro from NP Digital emphasized the need for advertisers to carefully evaluate the balance between security risks and return on investment when considering advertising shifts.
In the midst of refining its product offerings, Perplexity emphasizes the significance of brand safety as a top priority, underscoring the company’s commitment to providing a secure and effective advertising platform.
