Perplexity is pausing new ad deals to rethink how advertising fits into its AI search experience, according to Adweek. The article says that the platform’s ad revenue has been minimal, achieving just $20,000 in ad revenue in 2024 out of $34 million in total revenue. That suggests Perplexity’s ad business was struggling to gain traction even before this pause.
The development plays directly into Google’s hands. Google has already embedded ads into its AI Overviews, allowing sponsored content to appear alongside AI-generated summaries. Google’s ad system is deeply mature with targeting, bidding, and measurement, whereas Perplexity was barely off the ground. While Perplexity trialed “sponsored follow-up questions” and revenue sharing with publishers, the scale simply never materialized.
I wouldn’t write off Perplexity, but this move makes it clear they’re not yet ready for advertisers. If you are eager to advertise in the budding area of AI search or AI-generated advertising, experiment carefully with tight controls, demand transparency in performance reporting, and ensure content and creative are built for AI-first environments.
Google Has a Foothold on AI Search Advertising
For now, Google is the only major player offering scalable, performance-ready advertising within AI search. Its AI Overviews blend sponsored content with generative summaries, and because they sit on top of Google’s existing ad infrastructure, they’re measurable and accessible through familiar tools. Advertisers can already run search and shopping campaigns that surface inside AI-generated answers. The reach and data quality simply outpace any experimental ad units from AI startups.
That doesn’t mean marketers should go all in blindly. The format is still evolving, and advertisers should watch for changes in ad placement visibility and cost-per-click as more brands enter AI-integrated search. But Google’s integration shows what’s possible when AI is built on top of an established advertising backbone rather than bolted on after launch.
OpenAI is also a name to watch. The company has not launched an ad offering for ChatGPT or any of its generative products. But Search Engine Land reports that OpenAI could begin offering ads as early as 2026. For now, OpenAI executives maintain there are no active plans to introduce advertising.
A Smart Recalibration for Perplexity?
AI search will continue to evolve, and monetization will follow. For now, the safest move is to focus experimentation where ad infrastructure already exists. Google’s AI Overviews offer a practical way to test how your brand appears inside AI-generated results while maintaining campaign performance data. Use small pilots, measure aggressively, and keep creative adaptable to new placements.
As for Perplexity, the pause may be a smart recalibration rather than a failure. Building a sustainable ad business in AI search requires not only innovation but also patience, measurement standards, and scale. Until that happens, Google will remain the default home for advertisers navigating the next phase of AI-powered search.
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