Perplexity’s Play to Win AI-Assisted Paid Search | What's New?

Introduction

Hello there, everyone! I hope you all had a productive work week and have a long weekend planned ahead. Are you ready for AI-assisted paid search advertising? Yes, it sounds like quite a buzzword, but let’s break it down a bit.

Recently, Perplexity, the search-focused generative AI platform, has been working on a new advertiser pitch deck aimed at winning over marketers by providing prioritized answers—all for a negotiated fee. While this may sound familiar to classic search advertising, the question arises: how will this model operate in a landscape dominated by AI-assisted search? In traditional search advertising, businesses can pay for multiple slots on a search results page—top spot, second spot, etc. However, in an AI-driven search, where typically only one answer exists for a query, the advertising strategy becomes less straightforward.

Brand safety is another concern that comes to the forefront in this evolving landscape. Companies like Perplexity are investing heavily in partnerships with publishers, hinting at a significant evolution in how search advertising will function. Curious to learn more about the financial implications of this shift? Let's ask ChatGPT what it thinks about the best AI search for advertising. The response is that it all depends on budget, audience, and goals—interesting, right? It feels like ChatGPT is channeling its inner marketer.

Interestingly, Google has also begun integrating AI into its advertising platform, enhancing the relevance of copy and optimizing bids while analyzing landing pages for better conversion experiences. But what most marketers want to know is how to secure that coveted top position on search engine results.

For example, a search for “who is the best content marketing strategist” reveals an AI-generated overview naming known figures in the industry. However, it also raises questions about how to influence which articles are referenced as sources. If I have an older article that's cited, should I be investing in advertising to ensure it gets priority?

Meanwhile, Perplexity has begun challenging Google’s search dominance through its AI-related search capabilities. When I posed the same question to Perplexity, the results were a more diverse list of notable content marketing professionals, though it sparked a familiar frustration—my name was missing again.

Regardless, a recent article from Digiday reveals that Perplexity is moving towards integrating ads directly within search results, perhaps as early as October or November this year. Although pricing details were not provided, reports estimate that the goal is to target CPM rates north of $ 50, which is higher than traditional Google search ads that hover between $ 38 to $ 40. This indicates a belief in the potential effectiveness of these new AI-powered ads.

Perplexity is set to launch ads across a broad spectrum of categories including technology, health, food, sports, and more—essentially everything except for politics. This raises an exciting prospect, as they are forming partnerships with established publishers like Time Magazine, Der Spiegel, and Fortune.

Their new pitch deck hints that marketers will have the opportunity to purchase ad inventory beyond Perplexity itself, appearing on partner web pages. This could manifest as display ads on renowned sites such as the Wall Street Journal, potentially merging advertising with the content generation abilities offered through AI.

The implications of integrating advertisements with generative AI in partnership with publishers could lead to custom content hubs, powered by AI and sponsored by various brands. As content marketing evolves with these new AI capabilities, it is crucial for marketers to pay attention to where and how they allocate their budgets and efforts.

In conclusion, content marketing is entering an AI-enhanced era, creating new opportunities for businesses to navigate. While the ideal cost for utilizing AI in advertising remains to be determined, the evolving landscape is poised to be fascinating in the coming months.

Remember, it’s your story to tell—no need to pay for that privilege just yet. Go ahead and tell your story for free—I’ll see you all next week!

Keyword

AI-assisted search, Perplexity, paid advertising, generative AI, brand safety, content marketing, Google Ads, advertising strategy, marketing partnerships, display ads, custom content hubs.

FAQ

What is AI-assisted search advertising?
AI-assisted search advertising uses artificial intelligence to enhance the delivery of ads based on user queries, potentially changing how businesses secure ad placements.

How does Perplexity plan to integrate ads?
Perplexity plans to integrate ads into its search results, offering businesses the opportunity to purchase ad inventory that appears alongside AI-generated answers.

What are the potential costs for AI-assisted ads?
While specific pricing wasn't detailed, reports estimate CPM rates could exceed $ 50, higher than traditional Google search ads, which average between $ 38 to $ 40.

What categories will Perplexity's ads cover?
Perplexity plans to launch ads across various categories including technology, health, food, sports, and more, effectively covering a broad spectrum of interests.

How might content marketing change with AI?
As generative AI becomes integrated with advertising, content marketing could see new models emerge, including custom content hubs powered by AI and sponsored by businesses.