AI, Data & Commerce Trends You Need to Know

AI, Data & Commerce Trends You Need to Know

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.
Monetization

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.
Growth

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.
Future of Commerce

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.
Stat of the Week

E-commerce sales are expected to exceed $6 trillion by 2024, with online transactions making up 20.1% of global retail sales.

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