Perplexity AI began testing an ad format called “sponsored follow-up questions” with U.S. advertisers last year. These sponsored questions are AI-generated prompts that appear alongside direct answers given by Perplexity’s conversational chatbot. This approach is a departure from how ads appear in traditional search engines, such as Google, according to Business Insider.

According to the company, “sponsored follow-up questions” are AI-generated prompts that appear alongside the direct answers provided by its conversational search engine. Rather than inserting sponsored content directly into AI-generated answers, Perplexity uses an ad format that shows up beside its responses.

These are suggested prompts labeled as sponsored, inviting users to explore related topics. For example, after asking about electric cars, users might see a follow-up question like “What are the best EVs for long-distance travel?” tied to a sponsor.

The company says advertisers do not provide the text or phrasing of these questions. Perplexity's system generates them, and the AI still delivers the response. Perplexity also claims that these ads do not interfere with the core answer to a user’s original query.

Advertisers currently pay for ad slots on the platform on a CPM basis. Brands already using the format include Whole Foods, Universal McCann, PMG, and Indeed.

Why Perplexity is adopting the sponsored follow-up questions ad format

Perplexity says it is exploring a system that includes ads without disrupting what users came for, while still giving brands a chance to be seen. Ryan Foutty, VP of business development at Perplexity, told Business Insider that the format aims to support user intent by surfacing relevant next-step questions. He said 40 percent of users click on related questions.

Foutty described the experience as “additive” rather than disruptive, saying it helps users ask better questions or make better decisions. “You're helping users figure out the next question they need to ask... versus just trying to put something in your face,” he said.

A sign of how AI search is reshaping ad experiences

As AI search gains ground, users are moving away from traditional search toward AI-driven experiences. Google is already testing its own version of this in its AI Mode. Ads in AI Mode are displayed as “sponsored” product ads alongside AI answers, blending them into the response flow. However, in AI Overviews, ads are integrated directly within AI-generated summaries, placing product suggestions and purchase links inside the response itself.

Perplexity aims to align ads with how people use generative AI tools to search. With sponsored follow-up questions, the company is pitching that ads can fit naturally into the new way users search. 

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