Welcome to Katalys Connect – your weekly shortcut to the latest in performance marketing.
[Read time: 4 minutes]
What’s in this issue? Each week we pack the latest trends, actionable insights, and industry breakthroughs into a quick read – ensuring you’re not just keeping up, you’re staying ahead.
- Monetization: Explore how AI-driven apps, subscription models, and careful use of Google Discover are impacting publisher revenue strategies for sustainable growth.
- Growth: Discover how mobile-first optimization, privacy-compliant targeting, and TikTok’s innovative ad tools are helping brands capture attention and boost conversions.
- The Future of Commerce: Explore how AI-enhanced product visuals, predictions of e-commerce trends, and advancements for faster delivery methods are defining the next wave of innovation in the digital commerce space.
💸 Monetization
Ethical AI for Publishers • Particle, a new AI news app, aims to support publishers by driving traffic back to news sites and enhancing reader engagement with innovative tools.
- Particle partners directly with publishers, such as Reuters and AFP, to ensure fair compensation and prominent placement of their content, with referral links driving readers back to publisher sites.
- Particle’s chatbot allows users to ask in-depth questions about news topics, generating fact-checked responses with sourced support, and encouraging deeper engagement and critical thinking on complex stories.
Subscriptions Are So Back • Publishers are prioritizing subscriptions alongside direct-sold ads and branded content for revenue growth in 2025, marking a shift in monetization strategies
- A recent DigiDay survey shows a strong rise in publishers focusing on subscriptions, with 83% planning to invest in growing this revenue source, up from 67% last year. Additionally, 21% of publishers now report subscriptions as a major income stream, almost double from the previous year.
- Direct-sold ads continue to be the top revenue priority, with 93% of publishers focusing on this model, ensuring it remains a central monetization strategy alongside video and branded content.
Google Discover’s Risky Allure • Google Discover, a personalized content feed for mobile users, has become a major traffic source for many publishers – but heavy reliance on it comes with serious risks.
- While Google Discover delivers significant traffic (up to 55% of Google traffic for many publishers), it’s highly unpredictable. Publishers can lose Discover visibility overnight due to algorithm updates, making this source unstable for dependable growth.
- Publishers are advised to view Discover traffic as supplementary and to produce “information gain” content that adds unique insights, balancing emotive and factual headlines to avoid algorithm penalties and maintain audience trust.
💡 Growth
Mobile-First Holiday Strategy • With mobile projected to drive 53% of holiday sales, brands are optimizing sites and social ads to capture distracted shoppers’ attention quickly and reduce checkout friction.
- Brands like Therabody are catering to mobile users who shop in short bursts throughout the day, using quick-pay options, video content, and micro-influencer partnerships to build awareness and drive consideration.
- To combat high cart abandonment rates, brands are streamlining checkout with pre-loaded cart links, one-click checkout options, and saved payment methods, boosting conversion rates.
Customer Match Crackdown • Google’s Customer Match, a tool that allows advertisers to target or exclude users based on their email lists, faces stricter privacy rules next year, with warnings of immediate suspensions for violations.
- Starting in January, Google’s privacy-first approach will enforce stricter Customer Match rules, requiring documented consent, responsible targeting, and alignment with privacy standards to prevent misuse, with violations risking immediate suspension.
- To protect Customer Match access, advertisers should audit current practices, document consent, and incorporate compliance strategies into their 2025 planning.
TikTok Redefines Brand Advertising • With versatile ad formats like search ads and Smart+, TikTok is helping brands drive engagement, boost ROI, and create deeper audience connections on a rapidly growing platform.
- TikTok’s Smart+ feature, similar to Google’s Performance Max, automates ad creation, placement, and bidding to help brands minimize wasted spending and improve ad performance, making it easier to reach the right audiences at lower costs.
- With Smart+ and search ads brands are able to reach high-intent audiences and optimize ad spend, delivering up to 52% improvement in return on ad spend through automated targeting and bidding.
🚀 Future of Commerce
Era of AI Product Photography • AI-driven photography tools can redefine product imagery for eCommerce by lowering costs, enabling 3D views, and offering real-time customization to enhance the online shopping experience.
- High-quality, AI-driven visuals have been shown to boost conversion rates by 30% and decrease return rates by up to 22%, providing consumers with a more accurate sense of products.
- AI-generated images allow retailers to showcase products with 360-degree views and customizable backgrounds, enhancing shopper experience while reducing reliance on traditional photography studios.
Looking at E-commerce Trends • Emerging trends like AI-driven personalization, AR shopping, and the rise of quick commerce are set to reshape e-commerce, with brands investing in cutting-edge tools for enhanced consumer experiences.
- With over 1.7 billion AR-enabled devices expected globally, companies like Google and Walmart are tapping into AR for immersive shopping experiences, increasing consumer engagement and purchase rates.
- Nearly 60% of consumers cite convenient payments as a key purchase factor, resulting in digital wallets, “Buy Now, Pay Later” options, and seamless checkout becoming essential for boosting conversions and reducing cart abandonment.
Smarter Glasses, Faster Delivery • Amazon is developing updated Echo Frames with embedded displays for its delivery drivers, aiming to enhance efficiency by providing turn-by-turn directions and hands-free proof of delivery.
- The “Amelia” project aims to cut delivery times by guiding drivers through final steps in real-time, optimizing navigation and package handling during the last stretch of deliveries.
- Engineering obstacles, including battery life and weight, pose challenges for all-day wearability, while Amazon also faces hurdles in convincing third-party drivers to adopt the technology.
