Perplexity’s Bold Move: Why They’ve Frozen New Advertiser Onboarding
Perplexity slams the brakes on new advertising partnerships—and the timing couldn't be more strategic.
The Platform Shift
While traditional media scrambles for ad dollars, Perplexity's sudden freeze on new advertisers signals a deeper platform evolution. No gradual phase-outs, no warning shots—just a clean cutoff that's got marketers scrambling.
Quality Over Quantity
The move reeks of premium positioning. By limiting supply, Perplexity artificially constrains inventory while presumably boosting rates for existing partners. Classic platform economics—just ask any crypto exchange about listing fees.
The Unspoken Advantage
Existing advertisers now hold golden tickets in an exclusive club. Meanwhile, competitors face the awkward choice between matching Perplexity's elitist stance or doubling down on volume—the digital equivalent of choosing between a private yacht and a crowded ferry.
Perplexity isn't just rejecting advertisers—they're rejecting the entire growth-at-all-costs mentality that's turned most tech platforms into digital billboards. Sometimes the smartest business move is knowing when to stop growing.
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In addition, Perplexity began testing ads last year with brands like Whole Foods, Indeed, and Universal McCann. These ads let companies sponsor follow-up questions that appear during searches. While this feature is still active, Chan said that the company didn’t want to overwhelm users with ads too quickly. She explained that Perplexity is growing its ad strategy slowly and carefully. Chan also noted that advertisers are shifting away from performance-focused search ads and moving toward campaigns that build brand awareness, which is something that Perplexity might explore later.
However, it is worth noting that ads made up only $20,000 of Perplexity’s $34 million in revenue last year, according to The Information. Moreover, Ad buyers say that it’s hard to track how ads perform on Perplexity because it doesn’t offer detailed tools like other platforms. Nevertheless, Perplexity is continuing to grow its AI browser Comet, which is now free for all users and focuses on content from outlets like CNN, The Washington Post, and Fortune.
What Is a Good Price for NVDA?
Turning to Wall Street, analysts have a Strong Buy consensus rating on NVDA stock based on 36 Buys, two Holds, and one Sell assigned in the past three months, as indicated by the graphic below. Furthermore, the average NVDA price target of $219.42 per share implies 15.9% upside potential.
