Perplexity AI is set to start sharing ad revenue with news publishers when its chatbot uses their content to answer user queries. This initiative aims to address criticisms of plagiarism and unethical web scraping.
Dmitry Shevelenko, Perplexity’s head of business, mentioned to TechCrunch that the company had been considering this program since January, even before the accusations arose. The main reason for the publisher program is to ensure the continued production of accurate information by journalists, which is essential for Perplexity’s service.
Shevelenko emphasized the importance of aligning with publishers, stating, “We’re not cannibalizing publishers or competing with them, but we need to do our part to ensure vibrant and diverse business models and revenue streams.”
As generative AI transforms search behaviors, publishers are seeking new monetization methods. Perplexity’s initial publishing partners include Automattic, Der Spiegel, Entrepreneur, Fortune, The Texas Tribune, and TIME. These partners will receive access to Perplexity’s APIs and developer support to create custom answer engines on their sites, along with enhanced data privacy and security features through Perplexity’s Enterprise Pro offering.
Although Perplexity hasn’t started displaying ads yet, it plans to do so in the coming months. Shevelenko noted that the startup has secured top-tier brands across various consumer and B2B categories. For instance, if a user asks about visiting Tokyo, travel-related ads might appear. Revenue from these ads will be shared with publishers whose content is used to answer the queries.
While specific details of the ad-revenue share were not disclosed, Shevelenko mentioned it would be a “double-digit” percentage.
Several media outlets, including The Atlantic, News Corp, The Financial Times, DotDash Meredith, Axel Springer, and Vox Media, have recently signed licensing and product deals with OpenAI. This comes despite criticism from journalists at these publications, who accuse OpenAI of using their content without permission to train its AI models.
Michael Frazier, VP of data and operations at Entrepreneur Media, told TechCrunch that user behavior will significantly influence these developments. He emphasized the importance of meeting users where they are, a lesson learned from social media and Google Search.
Frazier mentioned that his team is developing a tool to make their content more interactive, leveraging Perplexity’s APIs. Perplexity collaborates with ScalePost.ai, a platform that facilitates partnerships between publishers and AI companies and provides analytics on how Perplexity cites their content.
Frazier highlighted the value of understanding user intent and behavior to better support readers. When asked about the risk of associating the Entrepreneur brand with potentially inaccurate AI-generated answers, Frazier acknowledged the concern but expressed confidence in Perplexity’s efforts to minimize errors.
Perplexity clarified that publishers in its program would not receive preferential treatment in search queries, unlike OpenAI’s media partners. Dmitry Shevelenko, Perplexity’s head of business, stated that the program’s focus is not on click-through rates but on sharing ad revenue and providing access to Perplexity’s APIs and Pro subscription.
Despite some publishers cooperating with AI companies, others are taking legal action. The New York Times, Raw Story, AlterNet, and The Intercept have sued OpenAI for allegedly using copyrighted content without proper attribution. Condé Nast and Forbes have also sent cease and desist letters to Perplexity, accusing it of using their content without permission. Perplexity, however, continues to invite these publishers to join its program.
“We’re excited to partner with them,” said Shevelenko.