Perplexity AI Challenges Google with Conversational Search Experience

Perplexity AI is an AI-powered search platform that aims to disrupt the traditional search engine model by providing users with summarized answers and cited sources. It operates on top of ChatGPT 3.5 and includes its own model. The premium version grants access to GPT-4, Claude 3, Mistral Large, and an Experimental Perplexity Model. Instead of a list of web page links, Perplexity delivers a concise answer to queries, which is seeing significant traction with over 2 million queries per day.

Brands and search engine marketers should consider the following when adapting to AI-powered search platforms like Perplexity:

1. Do your research: Use the tools to run queries and see how your business is represented in the responses.
2. Sources = rankings: Understand that being cited as a source in Perplexity's responses can be as valuable as traditional organic search listings.
3. Conversations vs. searches: Engage with the conversational nature of LLMs, which can carry context through a series of questions and answers.

Perplexity AI could significantly impact the search advertising industry by changing how users interact with search results. With its focus on providing summarized answers with citations, the platform could shift user behavior away from clicking on ads or multiple links to find information. This could lead to a reevaluation of the traditional pay-per-click (PPC) advertising model and potentially introduce new revenue models, such as affiliate links or direct purchase options within the search platform.

The next steps for Perplexity AI could involve determining how to integrate commerce and conversions more directly into their platform. While they currently operate on a freemium model with a $20 per month subscription for additional features, future developments might include affiliate or PPC models for queries. This could allow brands like Asics to provide direct purchase links within Perplexity's answers, driving more commerce transactions through the platform.