- Perplexity has paused accepting new advertisers as it reevaluates how ads fit within its AI search and Comet browser ecosystem.
- The move follows the departure of ad sales head Taz Patel, signaling a shift away from rapid ad expansion.
- Ads have contributed less than 0.1% of total revenue, according to reports, underscoring limited monetization impact so far.
- Advertisers cite measurement and transparency issues, while publishers question the revenue-sharing model’s effectiveness.
- The pause reflects broader industry uncertainty about how to build sustainable, trust-based revenue models for AI search.
The decision underscores broader industry tension between user trust, publisher economics, and ad-driven growth.
Perplexity, one of the fastest-growing AI search startups, has quietly hit pause on its advertising ambitions. Speaking at Advertising Week in New York, Jessica Chan, head of publisher partnerships at Perplexity, confirmed that the company is “not taking any new advertisers” and that ads are not currently on the roadmap for its AI browser, Comet.
The decision comes just months after the departure of Taz Patel, Perplexity’s head of ad sales, and follows an early phase of testing with brands such as Indeed, Whole Foods Market, PMG, and Universal McCann. Those campaigns allowed advertisers to sponsor follow-up questions in Perplexity’s conversational search results — an innovative but limited approach that never scaled widely.
“That still exists today, but we didn’t want to inundate our user experience with a ton of ads overnight,” Chan said. “We’re continuing to scale it very thoughtfully and methodically — probably not at the scale everybody’s hoping for.”
For a company that has positioned itself as a “trust-first” alternative to traditional search engines, the move represents more than a business slowdown — it’s a recalibration of how AI platforms should balance monetization with credibility.
Rethinking Monetization in AI Search
Advertising has long been seen as the natural path to monetizing AI-powered search, but early data suggest the economics aren’t straightforward. According to The Information, Perplexity generated just $20,000 in ad revenue out of $34 million in total revenue last year — a figure that highlights how small ads remain in its overall model.
The company’s advertiser relationships also revealed growing friction. Several media buyers told Adweek they struggled to measure core performance metrics such as click-through rates and return on ad spend, given Perplexity’s limited analytics tools. Without those insights, brands found it difficult to justify ongoing investment.
Perplexity’s publisher revenue-sharing program, launched in late 2024, was meant to complement its ad offering. The initiative paid outlets like The Independent, Los Angeles Times, and Blavity when their content appeared next to sponsored search responses. But even that model has produced modest returns. As one participating publisher told reporters, the income so far has been “barely material.”
These challenges illustrate the broader tension between the idealism of generative search and the realities of digital advertising — particularly when transparency, metrics, and trust are all under scrutiny.
Comet and the Shift Toward a Subscription Model
In parallel, Perplexity has been expanding its Comet browser, described as a home for “trusted publishers and journalists.” The company’s recent strategy pivots away from ad-heavy monetization toward subscription-based revenue sharing.
Comet: A Browser for Agentic Search by Perplexity
Coming soon. pic.twitter.com/SwVSwudgtN
— Perplexity (@perplexity_ai) February 24, 2025
Under its new structure, publishers receive up to 80% of revenue from the Comet Plus tier when their content is cited or drives traffic. This approach emphasizes credibility and compensation over traditional ad placements — a model more aligned with how AI platforms are repositioning themselves amid concerns about misinformation and copyright usage.
By prioritizing partnerships with mainstream outlets such as CNN, The Washington Post, and Le Monde, Perplexity is betting that curated, ad-light experiences will be more appealing to both users and media partners than intrusive ad integrations.
Trust and the Adverse Economics of Generative Search
Beyond Perplexity’s own hurdles, the company’s pause reflects a broader industry pattern. Research from eMarketer and CivicScience shows that only 9% of consumers are highly confident in AI-generated search results, while 37% express strong disinterest in using AI for search altogether.
That trust deficit has made advertisers cautious. Even as AI search platforms promise contextual, conversational ad placements, brands remain wary of the opaque nature of AI responses, potential bias in content generation, and uncertain brand safety controls.
As Debra Aho Williamson, founder of Sonata Insights, told Adweek,
“Companies that launched with a brand awareness model like Perplexity have struggled to maintain momentum. The digital business models that have proven most successful are performance-based.”
This sentiment captures the heart of Perplexity’s challenge: while traditional search monetization thrives on measurable performance, generative AI search is inherently less predictable and less measurable.
A Strategic Pause, Not a Retreat
Perplexity’s decision to pause new ad deals isn’t a sign of weakness — it’s a recognition of timing. The economics of generative search are still forming, and rushing monetization could undermine long-term trust.
As AI search continues to evolve, the industry’s biggest question remains the same: Can platforms like Perplexity make money without making compromises?
