It’s Perplexing
Perplexity AI is trying a lot of different things to prove that a relatively small and independent player can compete – or just exist – in the increasingly crowded LLM and AI-generated search engine category.
For example, Perplexity is an early and aggressive pursuer of alternative revenue streams, including ads, commerce and a web browser called Comet that launched in beta last week.
Perplexity is trying to grow its revenue while its costs soar – costs that often accrue to the cloud-based arms of its direct competitors, such as Google Cloud.
(Programmatic startups know the feeling.)
Perplexity is now trying to raise funds at a $14 billion valuation, The Information reports, although it only generated $34 million in 2024.
Distribution is incredibly expensive for Perplexity. For instance, it offers a free full-year subscription to Uber One subscribers, which is pricey to subsidize. But, hey, partnering with Uber is preferable to the $15 million Perplexity spends on AWS, not to mention the $8 million it gave to OpenAI and Anthropic to use their models.
Oh the irony. To compete with the likes of Amazon, Google, Microsoft and ChatGPT, not-yet profitable businesses like Perplexity must enrich those giant companies first.
Marketectural Design
Marketecture Media, an advertising information resource created by programmatic entrepreneur Ari Paparo, has struck again.
This time, it acquired Serial Marketers and AI Marketers Guild, two community-based resources for marketers. Serial Marketer has a Slack channel with 5,000 users.
David Berkowitz, who created both groups, will join Marketecture as its chief community officer.
Marketecture has now done five takeover deals over the past year. The release claims six, but Serial Marketers and AI Marketing Guild are sort of a bundle.
Several of Marketecture’s previous deals also focused on communities that operate on social platforms and Slack, the most prominent being anonymous creator account AdTechGod, who is Marketecture’s CMO despite being an undoxxed anonymous influencer account.
According to Paparo, his overarching vision is to help advertisers and marketing professionals “get smart, fast.”
“Communities are a big part of that,” says Paparo in the release. “And learning from peers is maybe the most effective strategy for career and professional development.”
Social Lingo
To say Duolingo’s been going through it lately is an understatement.
Three weeks ago, CEO Luis Von Ahn announced in an email that the language learning app would pivot to an “AI-first” strategy – meaning, among other things, no longer hiring human contractors “to do work that AI can handle.”
Duolingo’s once-beloved social media presence soured right afterwards, with users making jokes at the company’s expense and promising to break their streaks on the app.
Now Duolingo is in a “social media blackout,” per ADWEEK, and it’s leaning into that silence the only way Duolingo knows how – with its trademark surreal messaging.
Is this tantamount to admitting defeat? Maybe. But it’s still a good idea, and not just to allow more time for the marketing team to craft a new social strategy.
Large brands have come a long way since the days of social media being managed by an unnamed intern. But it’s become a tougher, higher-pressure gig.
If brands learn anything from this debacle – both the AI announcement misfire and Duolingo’s “experiment with silence,” to paraphrase a spokesperson – it’s that the well-being of human employees comes first (or should).
Oh, and that it’s no longer the case that all press is good press.
But Wait! There’s More
Microsoft turns to creators and influencers to promote Copilot Search in Bing. [Search Engine Roundtable]
The IAB released its updated General Terms for Digital Advertising Agreements – the first major overhaul in 25 years. The 60-day public comment period will run until July 21. [ADWEEK]
The Chicago Sun-Times printed an AI-generated summer reading list full of book titles that do not exist. [404 Media] The newspaper blamed a freelancer hired by a “nationally-recognized content partner.” [Chicago Sun-Times]
Apple plans to let developers build on top of its AI products. [TechCrunch]
The Onion is launching its own creative ad agency. (Not a joke.) [Marketing Brew]
Omnicom has set a target to reduce headcount by 10%. [PR Week]
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