Google is the big white whale in the ad market, and it’s been the company making all the rules. As such, this makes it the biggest target for up-and-comers looking to bring change. Perplexity is the one playing Captain Ahab this time by bringing a new online ad auctioning system.
Right now, Google is going through some tough times, as it’s fighting off its third major antitrust lawsuit in a year’s time, and it has already lost its last two. This most recent lawsuit targeted its ad business, and we’ve seen how much of an opposing force Google has been. As such, the world is looking at Google’s ad business with a much more watchful eye.
This seems like the reason for Perplexity’s next move. If Google loses this case, then the online ad market could be open for much more competition.
Perplexity wants to reinvent online ads
In case you don’t know, Perplexity is an AI company. However, unlike most other AI companies, Perplexity’s main product isn’t a chatbot. Rather, the company has developed an AI-powered search engine. For $20/month, you’ll gain access to all of the features that it provides.
The search engine gets its information from the internet using legitimate sources. However, just like with Google’s AI Overviews, users will see an AI-generated rundown of what people searched for. Under the search results, the search engine will show people follow-up questions that they can ask, and these questions are the key to this whole advertising model.
Using this model, companies will be able to place bids on certain follow-up questions. If the bid is accepted, then the user will be shown an AI-generated answer that’s been approved by the company placing the bid.
So, if you ask “How long to heat up baby formula”, a company can pay to display the follow-up question, “What are the best times to feed your baby”. The follow-up question could lead to that company’s website where it will be able to gain additional ad revenue.
Perplexity plans to launch this new ad system by the end of the year, and it’s already contacted some companies like Nike and Marriott. If this is a hit, then it might encourage other companies to take a stand against Google’s reign over the ad market.
