Cointelegraph by Tristan Greene
2024-08-23 16:56:45
cointelegraph.com
Artificial intelligence firm Perplexity AI has come under public scrutiny amid its reported plans to place ads in its AI-powered search engine. While many view this as the natural progression for the generative AI industry, at least one analyst has suggested this could lead to the company’s untimely demise.
Perplexity AI’s primary product is a “conversational search engine.” It essentially combines generative AI technology — similar to the tech underpinning OpenAI’s ChatGPT and Anthropic’s Claude — with search engine algorithms similar in concept to those used by Google Search or Microsoft Bing.
Search engine advertising
Reports recently surfaced indicating that Perplexity AI intends to integrate advertising into its product. According to a pitch deck seen by CNBC, those plans include charging advertisers $50 per every 1,000 impressions — which is measured as “cost per mile,” or CPM.
Facebook, for comparison, reportedly charges about $4.29 for every 1,000 impressions. While these numbers can change depending on factors such as the popularity of a given site or page or a specific advertiser’s willingness to spend, figures much higher are typically reserved for video and influencer campaigns.
Perplexity’s reported plan managed to catch the attention of technology pundit and marketing executive Ed Zitron, who took to the X social media platform to express his disbelief:
Zitron followed up his commentary by pointing out that there’s nothing stopping a competitor, such as OpenAI, from launching its own cheaper program. “Watch OpenAI come out and be like uhh, $25 CPM on searchGPT,” he added.
While consumers have shown interest in generative artificial intelligence products, the lion’s share of revenues throughout the industry appears to have come through business-to-business transactions. It’s unclear at this time exactly how many subscribers the various platforms charging for access to AI models have, but a brief analysis indicates that they’re nowhere near the numbers seen by the top social media platforms.
The integration of ads into generative AI products could provide an additional revenue stream for startups attempting to recoup funds spent on infrastructure and training, but only if consumers flock to the products in large enough numbers.
Related: Google partnership to accelerate blockchain oracle network growth
Support Techcratic
If you find value in our blend of original insights (Techcratic articles and Techs Got To Eat), up-to-date daily curated articles, and the extensive technical work required to keep everything running smoothly, consider supporting Techcratic with Bitcoin. Your support helps me, as a solo operator, continue delivering high-quality content while managing all the technical aspects, from server maintenance to future updates and improvements. I am committed to continually enhancing the site and staying at the forefront of trends to provide the best possible experience. Your generosity and commitment are deeply appreciated. Thank you!
Bitcoin Address:
bc1qlszw7elx2qahjwvaryh0tkgg8y68enw30gpvge
Please verify this address before sending any funds to ensure your donation is directed correctly.
Bitcoin QR Code
Your contribution is vital in supporting my efforts to deliver valuable content and manage the technical aspects of the site. To donate, simply scan the QR code below. Your generosity allows me to keep providing insightful articles and maintaining the server infrastructure that supports them.
Privacy and Security Disclaimer
- No Personal Information Collected: We do not collect any personal information or transaction details when you make a donation via Bitcoin. The Bitcoin address provided is used solely for receiving donations.
- Data Privacy: We do not store or process any personal data related to your Bitcoin transactions. All transactions are processed directly through the Bitcoin network, ensuring your privacy.
- Security Measures: We utilize industry-standard security practices to protect our Bitcoin address and ensure that your donations are received securely. However, we encourage you to exercise caution and verify the address before sending funds.
- Contact Us: If you have any concerns or questions about our donation process, please contact us via the Techcratic Contact form. We are here to assist you.
Disclaimer: As an Amazon Associate, Techcratic may earn from qualifying purchases.
