We provide a comprehensive analysis of Perplexity AI's advertising system, detailing its novel, contextual approach that diverges from traditional search advertising by focusing on user queries and avoiding deep personalization or tracking. It explains the ad formats, primarily sponsored follow-up questions and sidebar placements, and highlights the high CPM pricing and the challenges it presents for advertisers focused on performance metrics and ROI measurement. The sources also discuss Perplexity's targeted "premium" audience and the strengths and weaknesses of the platform, concluding that it is currently a niche, experimental offering with potential for brand-focused campaigns but significant hurdles for widespread adoption.

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