What is Perplexity and should we care about it?

ROI insights

You’ve likely heard a lot about generative AI like ChatGPT, but another player is rapidly gaining traction: Perplexity. Simply put, Perplexity is an ‘answer engine’. Unlike Google, which provides a list of links you then need to sift through, Perplexity aims to directly answer your questions, providing sources for its information. It feels like having a research assistant instantly summarise information for you. But what does this mean for Australian small and medium-sized enterprises (SMEs) and, crucially, should we care about it from a marketing perspective?

The short answer is yes, we should. Here’s why. Perplexity represents a significant shift in search behaviour, and understanding this shift is vital for maintaining – and growing – your market positioning.

  • Changing Search Intent: People using Perplexity aren’t looking to browse; they’re looking for direct answers. This means keyword strategies focused on long-tail questions and providing concise, informative content become even more important. We need to optimise for ‘answerability’ not just ‘rankability’.
  • The Rise of ‘Zero-Click’ Information: Perplexity delivers information directly, reducing the need to click through to websites. This impacts referral traffic. Our focus needs to shift towards ensuring our businesses are cited as credible sources *within* Perplexity’s answers. Think about building authority through thought leadership and becoming a go-to resource in your industry.
  • Content Format Evolution: Perplexity favours content that’s easily digestible and summarisable. Long-form blog posts still have value, but we also need to create content specifically designed to answer common questions succinctly. FAQs, ‘how-to’ guides, and structured data are key.
  • Local SEO Implications: While Perplexity isn’t geographically limited like traditional Google Maps searches, local businesses can still benefit. Ensuring accurate and complete business listings (name, address, phone number) and actively participating in local online communities increases the chance of being cited as a relevant source for local queries.

The impact of Perplexity will only grow. As AI technology improves, more Australians will adopt answer engines like this as their primary method of information gathering. Ignoring this trend means potentially losing visibility and influence. The immediate next step for us is to audit our current content strategy. Are we proactively answering the questions our target customers are asking? Are we making it easy for Perplexity – and other AI tools – to find and cite our expertise? Focusing on these areas will future-proof our marketing efforts and ensure we remain competitive.

The bottom line

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