Perplexity Pauses New Advertisers as It Refines AI Search Ad Strategy

Perplexity, the Nvidia-backed AI search platform, has halted new advertiser onboarding while reevaluating its ad integration strategy. Jessica Chan, head of publisher partnerships, confirmed the pause during Advertising Week in New York, noting ads won't appear in their Comet browser for now. The decision follows early tests with brands like Whole Foods and Indeed, where sponsored follow-up questions appeared during searches.

The company remains cautious about overwhelming users, opting for gradual ad rollout. Chan observed a broader industry shift from performance-driven search ads to brand awareness campaigns—a direction Perplexity may later explore. Despite generating $34 million revenue last year, ads contributed merely $20,000, underscoring the experimental phase of its monetization efforts.