Next-Gen Ads: AI and Big Data

Next Gen Ads AI and Big Data

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: Discover how Facebook’s entertainment pivot, OpenAI’s publisher partnerships, and Google’s new SEO policies are reshaping the landscape for digital publishers.
  • Growth: Explore how the rise of shoppable video content, the digital ad spending boom, and Meta’s new genAI ad tools are transforming the industry.
  • The Future of Commerce: Look into how AI-driven collaborations and big data partnerships are revolutionizing targeted advertising and personalized shopping experiences.
Monetization

Facebook’s Entertainment Pivot • Facebook’s shift away from news content has slashed publisher referrals by 50% in just one year, reshaping media strategies and priorities.

  • As Facebook pivots towards entertainment and AI-driven content, news outlets must adapt to diminished referral traffic and explore alternative digital channels.

  • This decline aligns with Meta’s strategy to enhance user engagement through non-news content, prioritizing entertainment over information.

Inside OpenAI’s Publisher Pitches • Leaked documents reveal OpenAI’s tactical pitches to premium publishers, highlighting a series of high-profile partnerships and a commitment to flexible, publisher-specific negotiations.

  • The disputed decks reveal perks such as enhanced visibility and user engagement through priority placement and specialized content displays within ChatGPT interactions.

  • It’s not just about access – it’s about profit. Publishers would benefit from a lucrative blend of guaranteed payouts and performance-based bonuses.

Google’s Spam Cracks Down • With its new site reputation abuse policy, Google has started delisting specific site sections, impacting major publishers and reshaping SEO strategies.

  • Google has quickly taken action against major sites like CNN, LA Times, and USA Today, removing coupon directories from search rankings.

  • While current enforcement is manual, Google plans to implement algorithmic measures soon, signaling a major shift in how SEO strategies must be approached to avoid future penalties.
Growth

Watch, Click, Buy •  U.S. shoppers are increasingly looking for shoppable video content on brand websites, evolving the online shopping journey into an interactive experience.

  • Projected to engage 300 million consumers by next year, shoppable video content is fast becoming an indispensable feature for e-commerce sites.

  • A desire to see products in action is driving a surge in online beauty purchases, with 39% of consumers likely to increase health and beauty purchases next year.

Digital’s Dramatic Rise • As digital ad spending overtakes traditional channels, media giants showcase their strategies to attract advertisers at the annual Upfront.

  • While traditional TV ad buying sees marginal growth, digital platforms are booming, with digital ad spend during Upfronts and Newfronts projected to increase nearly 32% to $16.45 billion this year.

  • Advertisers are turning their attention to platforms like Netflix and YouTube, where dynamic ad-supported tiers are capturing price-sensitive audiences

Innovation in Ad Creation • Meta introduces new genAI features in its Ads Manager’s Advantage+ creative suite, enabling advertisers to automate and scale ad production across its platforms.

  • Tools to automate text and image creation allow marketers to deliver tailored ads faster than ever to various audience segments.

  • Soon advertisers will also be able to create images from simple text prompts and utilize advanced tools that echo their brand’s unique voice, making digital ads more relevant and engaging.
Future of Commerce

AI Meets Publishing Powerhouse • Dotdash Meredith has partnered with OpenAI to leverage its extensive content network to enhance OpenAI’s algorithms and jointly develop new AI-driven products.

  • The collaboration will boost Dotdash Meredith’s D/Cipher ad-targeting technology, employing OpenAI’s models to provide more precise advertising without the need for personal identifiers, adapting to a future without cookies.

  • As part of the agreement, OpenAI will also integrate Dotdash Meredith’s content into relevant ChatGPT responses – ensuring users can access real-time information.

Big Data, Big Impact • Walmart joins forces with Disney to set new standards for targeted advertising, using rich data and proprietary tools to reach audiences more effectively on Disney Plus and Hulu.

  • With access to insights from approximately 145 million weekly shoppers, advertisers can tailor their full-funnel marketing strategies to effectively reach viewers across Disney’s streaming services.

  • The partnership employs cutting-edge clean-room technology to merge datasets, allowing precise data application without external data sharing, keeping consumer privacy intact.

E-commerce Evolves with AI • In the increasingly competitive e-commerce world, AI technologies can offer personalized shopping experiences that attract customers and build loyalty.

  • Using AI, advertisers can harness extensive consumer data—from browsing habits to purchase history—to create highly customized shopping journeys, ensuring every interaction is tailored to the shopper’s preferences.

  • Through sophisticated algorithms and machine learning, AI not only refines product discovery but also implements dynamic pricing strategies, adjusting costs in real-time to optimize both engagement and sales.

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