Nvidia-backed (NVDA) AI firm Perplexity has stopped accepting new advertisers while it figures out how ads should fit into its AI search platform. In fact, at Advertising Week in New York, Perplexity’s head of publisher partnerships, Jessica Chan, said that the company is currently not adding advertisers and that ads won’t be part of their AI browser, Comet, for now. Interestingly, just last December, the company partnered with publishers like The Independent and LA Times through a program that paid them when their content showed up next to ads.
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In addition, Perplexity began testing ads last year with brands like Whole Foods, Indeed, and Universal McCann. These ads let companies sponsor follow-up questions that appear during searches. While this feature is still active, Chan said that the company didn’t want to overwhelm users with ads too quickly. She explained that Perplexity is growing its ad strategy slowly and carefully. Chan also noted that advertisers are shifting away from performance-focused search ads and moving toward campaigns that build brand awareness, which is something that Perplexity might explore later.
However, it is worth noting that ads made up only $20,000 of Perplexity’s $34 million in revenue last year, according to The Information. Moreover, Ad buyers say that it’s hard to track how ads perform on Perplexity because it doesn’t offer detailed tools like other platforms. Nevertheless, Perplexity is continuing to grow its AI browser Comet, which is now free for all users and focuses on content from outlets like CNN, The Washington Post, and Fortune.
What Is a Good Price for NVDA?
Turning to Wall Street, analysts have a Strong Buy consensus rating on NVDA stock based on 36 Buys, two Holds, and one Sell assigned in the past three months, as indicated by the graphic below. Furthermore, the average NVDA price target of $219.42 per share implies 15.9% upside potential.
