Perplexity AI, the startup focused on artificial intelligence that has faced scrutiny over allegations of copying content from media sources, is gearing up to roll out ads on its search application in the fourth quarter, as per reports.

The company is touting the app’s extensive user base and growing engagement levels in a presentation being circulated. Perplexity claims over two million downloads and 230 million monthly users, with searches from the U.S. surging eight times in the last year, according to details from the presentation reviewed by sources.

Having secured fresh funding in April, valuing the firm at over $1 billion, Perplexity’s popularity surge has brought to light concerns about how it aggregates content from external sources.

Reports emerged earlier this year, indicating instances where Perplexity showcased content resembling that of Forbes and Wired without proper attribution. In response to these claims, the company stated that it had made adjustments to how sources were cited in its Pages feature and improved the accuracy of citing outlets directly within responses.

Perplexity recently introduced a revenue-sharing initiative that enables publishers to earn from the search engine’s generated ad revenue. Through this model, Perplexity pledges to share a portion of the revenue with publishers each time an article citation in an answer leads to ad income.

The “Publishers Program” has onboarded notable partners such as Fortune, Time, and The Texas Tribune, offering revenue shares based on the number of articles featured in responses. The company intends to onboard 30 publishers by year-end.

Perplexity’s advertising model, based on CPM pricing, is anticipated to command CPM rates exceeding $50, a departure from industry standards outlined in a blog post by Semrush.

Initial advertising categories for Perplexity include technology, health, finance, and arts, with ad spaces available below answers and alongside generated responses.

Demographically, Perplexity users skew towards higher education levels and are prominently positioned in senior leadership and high-income professions.

Investors view AI-powered search platforms as key disruptors in the online information access landscape. The market has seen the likes of OpenAI and Google introducing innovative search functionalities in response to the evolving consumer preferences and technological advancements.

[source](https://www.cnbc.com/2024/08/22/perplexity-ai-plans-to-start-running-search-ads-in-fourth-quarter.html)