Perplexity AI launched advertising in November 2024, becoming the first major AI search engine to test paid placements. Eleven months later, the platform paused accepting new advertisers to "reassess its ambitions." With 22 million active users, 780 million monthly queries, and CPM rates exceeding $50, Perplexity represents an intriguing but immature opportunity. Early partners like Indeed and Whole Foods tested sponsored questions and video ads, but advertiser feedback reveals significant challenges: limited scale, unclear ROI metrics, and inventory constraints.
What Is Perplexity AI Advertising?
Perplexity launched ads with a different model than Google or Meta. Instead of keyword bidding, it introduced two formats:
- Sponsored Follow-Up Questions appear in the "Related Questions" section, accounts for 40% of all platform queries, where advertisers influence suggested follow-up questions. When clicked, these generate AI-powered answers that Perplexity claims remain objective, though brands approve content in advance.
- Video Ads and Paid Media display alongside answers, labeled as "sponsored."
The platform grew from 3,000 daily queries in 2022 to over 30 million daily by 2025. Users skew educated: 82% hold undergraduate degrees and 45% have graduate-level education, with strong representation from medicine, law, and software engineering.
Current Status: On Pause
As of October 2025, Perplexity stopped accepting new advertisers. Jessica Chan, head of publisher partnerships, confirmed at Advertising Week NYC that ads "aren't currently on the roadmap" for their new Comet browser.
This followed the August 2024 departure of ad sales head Taz Patel. While early partners continue testing, the ad business remains a closed pilot, not the scalable platform marketers expected.
Perplexity vs. Google Ads: The Reality Gap
The differences between Perplexity and established platforms are stark:
Google Search generated $66.89 billion in ad revenue in Q1 2025 alone. Perplexity burned through $65 million in 2024 while generating just $34 million in revenue, mostly from $20/month Pro subscriptions.
Who's Actually Advertising on Perplexity?
Initial partners included Indeed, Whole Foods Market, Universal McCann, and PMG. Reports indicated discussions with Nike and Marriott.
Six months into the pilot, marketers told Digiday: "Limited inventory, slow rollout of features, and a lack of meaningful data on return-on-investment."
One anonymous ad executive: "We're in talks with Perplexity about their Merchant Program, and they've earmarked one of our larger clients for testing opportunities, but progress has been slow."
Ryan Bopp, SVP of digital strategy at Eden Collective: "Our hesitation stems from a few key concerns: limited scale, lack of demonstrated ROI, brand safety considerations, and CPM efficiency."
The Scale Problem
Perplexity's user base sounds impressive until you compare:
- ChatGPT: 800 million weekly active users (October 2025)
- Google AI Overviews: 1.5 billion monthly users across 200 countries
- Perplexity: 22 million MAUs with 153 million website visits (May 2025)
That 20x to 70x user gap means dramatically fewer potential customers. For performance marketers managing tight budgets, it's a dealbreaker.
What Advertisers Are Missing: Performance Metrics
Traditional platforms provide conversion tracking, attribution models, A/B testing, and clear ROI calculations. Perplexity doesn't.
Missing fundamentals:
- Click-through rates for sponsored questions
- Conversion rates from ad impressions
- Attribution methodology
- Analytics platform integrations
- Custom audience building
- Retargeting capabilities
One media buyer: "We don't have enough data to justify scaling up spend."
This explains why Perplexity's Merchant Program, launched alongside ads to help retailers surface products in shopping recommendations, has "been slow to scale," according to multiple agency sources.
When Perplexity Ads Might Make Sense
Despite limitations, specific scenarios could justify testing:
Brand Awareness for High-Value Audiences
Targeting educated professionals in tech, finance, healthcare, or law? Perplexity's demographics align. CPM rates above $50 suggest premium placement similar to LinkedIn.
Experimental Budget
Got 5-10% of digital budget for testing emerging channels? Perplexity fits, but only if you don't need immediate performance data.
Publisher Revenue
Over 300 publishers joined Perplexity's Publisher Program, earning revenue shares when content appears alongside ads. For media companies, this represents new monetization as AI reshapes traffic patterns.
Early Mover Advantage (Maybe)
Being among first advertisers could position your brand favorably as the platform matures. But remember: Perplexity paused new advertisers because it hasn't proven that advantage yet.
The Bigger Picture: AI Search Advertising in 2025
Perplexity isn't alone. Google expanded ads to AI Overviews on desktop in May 2025 and launched ads within AI Mode, its conversational search experience. Microsoft tested ads in Copilot. OpenAI hasn't ruled out advertising for ChatGPT's free tier in 2026.
The difference? Google processes 5 trillion searches annually with proven infrastructure. Advertisers using AI Max for Search campaigns see 14% more conversions at similar cost-per-acquisition (27% for exact match-heavy campaigns).
Caitlin Halpert, VP of growth at performance marketing agency Journey Further: "Prioritize earned media coverage and create content that deeply resonates with users, rather than merely optimizing for algorithms."
Without traditional keyword targeting or bidding, Perplexity AI marketing success requires creating content that AI naturally references, with or without paid placement. (Our guide to Generative Engine Optimization covers strategies for getting cited across Perplexity, ChatGPT, and Google AI Overviews.)
Should You Advertise on Perplexity in 2025?
Not yet for most advertisers.
- No self-serve access – You can't even test
- Limited scale – 22M users vs. hundreds of millions elsewhere
- No conversion tracking – Impossible to measure success
- Unclear pricing efficiency – $50+ CPM with no ROI data
- Platform uncertainty – New advertiser pause signals strategic problems
If you're judged on CPA, ROAS, or clear attribution, you can't justify spend here yet.
What to Do Instead
Optimize for AI Search Citations
Make your content citation-worthy across all AI platforms: Perplexity, ChatGPT, Google AI Overviews. This requires:
- Structured data markup (FAQ schema, product schema, how-to schema)
- Direct, quotable answers to common questions
- Clear source attribution and expert authorship
- Topic clustering that establishes authority
Monitor Perplexity's Evolution
Set up Google Alerts for "Perplexity advertising" and "Perplexity self-serve ads." When the platform reopens with better measurement, move quickly.
Focus on Google AI Overviews
Google AI Overviews reached 1.5 billion monthly users by mid-2025. If you're not optimizing for that, you're missing the bigger opportunity.
Consolidate Your Advertising Data
If you're running campaigns across Google Ads, Microsoft Ads, Meta, and testing emerging channels, you need unified reporting. Manual exports work for small budgets, but automation saves hours as you scale. Tools like Dataslayer connect multiple advertising sources to Google Sheets, Looker Studio, BigQuery, or Power BI for consolidated dashboards.
FAQ: Perplexity AI Marketing
Can anyone advertise on Perplexity AI right now?
No. As of October 2025, Perplexity paused accepting new advertisers. Only original partners from the November 2024 launch continue testing. There's no self-serve platform or public timeline. Monitor official Perplexity channels for updates.
How much do Perplexity ads cost?
Perplexity uses CPM pricing with rates exceeding $50 per thousand impressions. The platform offers minimum guarantees for category exclusivity across 15 sectors including technology, health, finance, and food. These premium rates reflect Perplexity's educated, high-income users but lack conversion data to calculate true cost-per-acquisition.
What ad formats does Perplexity offer?
Two formats: (1) Sponsored follow-up questions in the "Related Questions" section (40% of platform queries), where AI generates approved answers when clicked, and (2) Video ads positioned alongside answers, labeled as "sponsored." Clicking these ads continues the AI conversation rather than redirecting users away.
What's the minimum budget for Perplexity ads?
Perplexity hasn't disclosed minimum spend, though premium CPM pricing ($50+) and category exclusivity suggest significant thresholds. Budget discussions happen directly with Perplexity's sales team through the closed pilot program.
Does Perplexity have conversion tracking or analytics?
No. Advertisers cite lack of ROI data as a primary concern. No confirmed integrations with Google Analytics, Adobe Analytics, or other measurement platforms exist. You cannot track cost-per-acquisition, attribute conversions, build custom audiences, or optimize based on performance, standard capabilities in modern digital advertising.
The Bottom Line
Perplexity AI's advertising experiment looked promising when it launched in November 2024. The October 2025 pause accepting new advertisers revealed the reality: limited scale, unclear metrics, and strategic uncertainty.
Your marketing budget delivers better returns elsewhere right now. Focus on optimizing for Google AI Overviews where 1.5 billion monthly users already search, build content that earns citations across all AI platforms, and watch Perplexity from the sidelines.
When the platform reopens with self-serve access and proven conversion tracking, you'll be ready to test. Until then, chase measurable results over shiny objects.
Need to track advertising performance across multiple platforms? Try Dataslayer free for 15 days to connect Google Ads, Meta Ads, Microsoft Ads, and 100+ marketing platforms to Google Sheets, Looker Studio, BigQuery, or Power BI.
