AI, Data & Commerce Trends You Need to Know

By Katalys Content Team●April 30, 2024

Welcome to Katalys Connect – your weekly shortcut to the latest in performance marketing.

[Read time: 4 minutes]

What’s in this issue? Each Tuesday, 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 alternative revenue streams while navigating the evolving world of AI chatbots and Google’s algorithm shift.
Growth: Discover how the demise of third-party data creates a goldmine for first-party data champions and how Reddit is capitalizing on booming online shopping trends.
The Future of Commerce: Get a glimpse into how Google’s AI is changing search and the potential impact of the US law on TikTok.

Cashing in on AI Chatbots • Not so fast – low CPMs and lack of user behavior insights for these new platforms make ad-based monetization tricky.

Some publishers are betting on subscriptions instead, giving them more control and potentially more cash.

Publishers see potential in using user data (like question history) for targeted ads, but user privacy remains a top concern.

Algorithms Take The Wheel • Google is ditching the Publisher Center and manual submissions to help determine what content appears in Google News.

Previously, publishers could submit websites for review, but now Google’s algorithms will determine eligibility.

To get discovered, publishers need to prioritize SEO best practices and high-quality content aligned with Google’s ranking factors.

Tech Shoppers’ New Power Couple • A new retail media partnership between Best Buy and CNET lets advertisers reach consumers throughout their tech-buying journey.

By combining a retailer’s sales data with a publisher’s trusted content, advertisers can target consumers with laser focus.

This first-of-its-kind deal offers advertisers a powerful way to reach tech buyers, potentially leading to a new wave of retailer-publisher partnerships.

The Great Data Pivot • Traditional advertising based on third-party data is fading away, presenting a golden opportunity for advertisers to modernize operations and gain a competitive edge.

Companies can either acquire specialized data firms or invest in rebuilding their technology for a first-party data future.

Even companies pursuing acquisitions must transform their internal operations and workflows to align with a first-party data approach.

Reddit Gets Serious About Shopping • Fresh off its IPO, Reddit is rolling out a new advertising tool to connect brands with interested buyers.

Giants like Google and Meta are pioneering sophisticated approaches, focusing on the lifetime value of customers rather than just immediate gains, adapting to the nuanced needs of the modern e-commerce landscape.

These emerging metrics compel advertisers to overhaul their strategies, emphasizing long-term value and overall business impact over simple click-throughs and views.

Google Search Surges • Google Search continues to be a major growth driver for Alphabet, contributing to the company’s 15% overall revenue growth.

Strong search ad performance indicates businesses are embracing Google’s automation tools like Performance Max, paving the way for further AI integration in advertising.

Advertisers using Performance Max with automatically created assets (ACA’s) see a 63% increase in the likelihood of publishing high-performing campaigns.

Smarter Search with AI • Google CEO claims its new AI overviews are driving increased search usage and user satisfaction.

The success or potential failure of Google’s Search Generative Experience (SGE) could significantly impact how users find information online.

Google reports serving “billions of queries” using its generative AI features, with AI overviews being a core component of SGE aimed at improving results for more intricate search questions.

Double Trouble for TikTok • A new US law forces TikTok to sell or face a ban, but China might block a sale, causing a legal and political dilemma for the social video app.

TikTok is likely to argue that the forced divestment violates its First Amendment rights and those of its users.

The US government may use existing rules on foreign ownership of broadcast media as a precedent to restrict foreign ownership of influential social media platforms.

The Bite Sized Revolution • Our shortening attention spans are fueling a content boom with platforms like TikTok and YouTube Shorts leading the charge.

Studies show a significant decline in focus time, with the average American adult now concentrating on content for just 47 seconds.

Total ad spending on social media and user-generated video platforms in the US hit nearly $94 billion in 2023, a 15% year-over-year increase driven almost entirely by short-form video.