Advertising Chief Resigns Nine Months After Taking Up Post
Perplexity, the AI-driven search engine, has taken a significant step forward in its growth journey by introducing an advertising program. The move, which follows months of development, is expected to generate revenue for the company and its publisher partners.
The advertising program, which operates on a CPM (cost per thousand impressions) structure, is designed to provide transparent advertising opportunities that encourage user engagement through natural curiosity. This approach differs from traditional search engine optimization practices.
Taz Patel, who joined Perplexity as the head of its emerging advertising business in December 2024, played a pivotal role in the development of this program. Patel, the former head of advertising and shopping at Perplexity, departed the company on August 29, 2025.
Perplexity's advertising appears as sponsored follow-up questions on the side of answers. This innovative approach aims to blend advertising seamlessly into the user experience, fostering engagement rather than disrupting it.
In addition to the advertising program, Perplexity has also expanded its offerings. In October 2024, the company introduced Spaces, an AI-powered collaboration hub that allows users to create customized knowledge spaces. This feature is part of Perplexity's mission to provide users with a comprehensive AI-driven platform for learning, searching, and collaboration.
Moreover, Perplexity launched an AI-powered shopping hub backed by Amazon and Nvidia in November 2024. This service provides product recommendations in response to user queries, further enhancing the platform's utility and value to its users.
Perplexity's audience profile is characterised by high education levels and professional status. According to the company, 80% of its users hold undergraduate degrees, 30% are in senior leadership positions, and 65% work in high-income white-collar professions.
The company's growth has been impressive. Perplexity's annual recurring revenue increased from $3-4 million at the beginning of 2024 to approximately $70 million by year-end. This growth has attracted investment from prominent technology figures, including Jeff Bezos, Nvidia, Databricks, and Bessemer Venture Partners.
Perplexity processes 100 million search queries per week, a testament to its growing user base and the demand for its AI-driven services. The company's platform also offers finance-related features, including real-time stock quotes and company earnings data, sourced from Financial Modeling Prep.
While information about the initial testing partners for the advertising program is not available, it is clear that Perplexity is poised for continued growth and innovation in the digital advertising space. The departure of Taz Patel comes as Perplexity continues building its advertising infrastructure during what company leadership described as a traditionally strong period for digital advertising spending.
