Why a Samsung-backed AI startup is testing AI search

Liner, a South Korean AI search engine, has been testing ads in the U.S. and Europe using a traditional cost-per-click model. But unlike Perplexity, which is working to attract advertisers with a CPM model, Liner thinks CPC is still more measurable.

The company is currently testing three formats: ads that show up above and below an AI-generated answer and another ad format called “generative ads” that shows up within an answer. Tests for ads began last year in the U.S., with generated ad tests since earlier this year.

“We had this kind of hypothesis,” Liner founder and CEO Luke Kim told Digiday. “In digital ads, there are search ads and display ads. Search ads are a good business because the conversion rate is high. Display ads are a good business because it has a lot of impressions and a lot of views because you can put banners anywhere. Maybe we can create some kind of third category, which is AI search ads.”

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