🤔 Is Perplexity AI’s New Ad Plan a Genius Move or a Gamble?

Hi AI Futurists,

Today, we are diving into Perplexity AI’s bold new strategy to focus on ad impressions rather than clicks in their upcoming ad rollout.

This shake-up could change the game for how AI platforms approach advertising, and we’re here to see if it’s a brilliant move or a risky bet.

Best,
Lex

Want SOC 2 compliance without the Security Theater?

Tired of SOC 2 Security Theater? 🤔 

Oneleet is the all-in-one platform for building a real-world Security Program, getting a Penetration Test, integrating with a 3rd Party Auditor, and providing the Compliance Automation Software.

Schedule a demo for pricing!

Highlight of the Day

Perplexity’s New Ad Model Prioritizes Views Not Clicks

Perplexity AI is set to shake up its business model by introducing advertising in its app during Q4. Instead of following the traditional cost-per-click (CPC) approach used by search engines like Google, Perplexity is opting for a cost-per-mille (CPM) model, where advertisers pay per 1,000 impressions, regardless of clicks. This move hints at lower click-through rates on source links in Perplexity’s AI-driven answers, suggesting that users are more interested in consuming content directly from the AI rather than visiting the original sources.

The ads will cover topics like tech, health, and finance, targeting a growing user base that generates around 230 million searches. However, this model raises concerns for publishers who rely on clicks for traffic. In response, Perplexity introduced a revenue-sharing model to compensate publishers whose content is featured in AI answers. While this move aims to address tensions between AI and traditional web content, it remains to be seen if it can fairly support both AI platforms and the broader online ecosystem.

Important Points:

• Perplexity AI to launch CPM-based ads in Q4, focusing on impressions over clicks.

• CPM model suggests low user engagement with source links in AI-generated answers.

• Perplexity introduces a revenue-sharing model to compensate publishers, addressing concerns over content use.

What We Think About It:

Perplexity’s decision to prioritize ad impressions over clicks shows they’re betting on visibility rather than real user engagement, which feels like a risky move. While the revenue-sharing model might appease some publishers, it doesn’t fully solve the problem of AI taking content without driving traffic back to the source. If Perplexity wants to build trust and maintain a sustainable ecosystem, they’ll need to do more than just throw a bit of revenue at the problem—they’ll need to rethink how they value and support the original content creators.

👉 Read more

Cool AI Tools

1. Next Alpha

   Next gen AI crypto research tool for traders

   

2. Paperguide

   Discover, read, write and manage research with ease using AI

   

3. AssemblyAI

   Quickly build AI products with voice data

   

Best of the Rest

• Meta pulls plug on plans for high-end Vision Pro competitor

• Google appoints ex-CEO of Character.AI as Gemini co-head

• OpenAI Says California’s Controversial AI Bill Will Hurt Innovation

• ElevenLabs’ AI Reader app can now narrate text in 32 languages

And Now, AI’s Take on Van Gogh’s Starry Night

That’s all for today, folks!

• If you’re enjoying the newsletter, share with a friend by sending them this link: 👉 https://www.futureblueprint.xyz/subscribe

• Looking for past newsletters? You can find them all here.

• Working on a cool A.I. project that you would like us to write about? Reply to this email with details, we’d love to hear from you!