January flew by and the Katalys team has been busy setting the stage for a big year ahead! As we step into February, we’re excited to bring you the latest edition of Katalys Connect – your 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: From Meta’s TikTok creator bid to the surge in subscriptions and audio, see how publishers and creators are adapting to a shifting revenue landscape.
- Growth: AI and social search are reshaping marketing – learn how brands are optimizing content, rethinking search, and preparing for TikTok’s uncertain future.
- The Future of Commerce: Shoppable Super Bowl ads, rising tariffs, and AI’s growing influence – discover how tech and policy shifts are redefining e-commerce.
💡 Katalys Insights
Social Whitelisting, A Win-Win • Want to expand your reach? Social whitelisting allows brands to run ads through trusted publisher accounts to amplify credibility and engagement.
- This strategy helps brands tap into highly engaged audiences while both the brand and publisher gain valuable performance insights.
- It’s a smarter way to scale paid social campaigns and strengthen partnerships. Read our blog post to learn how social whitelisting can elevate your ad strategy in 2025.
🚀 Brands: Ready to get started? Sign up to browse Social Whitelisting Opportunities on the Katalys Marketplace.
📢 Publishers: Have social whitelisting opportunities? Contact us to discuss how to list them on the Katalys Marketplace.
💸 Monetization
Subscriptions Surge, Audio Thrives • With subscription growth slowing and video monetization faltering, publishers must diversify into data monetization and emerging revenue streams to stay competitive.
- Subscriptions now account for nearly a third of publisher revenue, closing in on display advertising’s shrinking 38% share.
- Digital audio revenue has skyrocketed twentyfold since 2020, while video revenue has dropped 15% due to YouTube’s dominance.
Meta’s Price for Creators • Meta is offering TikTok stars up to $300,000 to post exclusive content on Instagram Reels in a bid to dominate short-form video.
- Deals range from $2,500 to $50,000 per month, requiring creators to post more Reels than on competing platforms and promote their Instagram presence.
- Some creators are rejecting the offers, citing restrictive exclusivity terms and frustration with Meta’s demands, despite the lucrative payouts.
RetailMeNot in Hot Water • Creators are suing RetailMeNot, claiming it hijacks affiliate commissions by manipulating last-click attribution – just like the recent PayPal Honey and Capital One Shopping cases.
- The lawsuit, led by YouTubers TechSource and ToastyBros, alleges RetailMeNot replaces creator affiliate links with its own, diverting commissions without adding value.
- Some creators are rejecting the offers, citing restrictive exclusivity terms and frustration with Meta’s demands, despite the lucrative payouts.
📈 Growth
Search Ads Get Crowded • AI-powered and social platforms like TikTok and Perplexity AI are challenging Google’s dominance, reshaping how brands approach search advertising.
- TikTok is pitching search ad inventory as users increasingly turn to the platform for product discovery, while Perplexity AI charges $30–$60 CPMs for sponsored answers.
- Some brands are increasing experimental search budgets by 25%, but with Google still pulling in $49.4 billion in search revenue last quarter, many remain hesitant to shift their spend.
AI Shaping Brand Stories • Generative AI is rewriting brand narratives, and those who don’t optimize their content risk being misrepresented – or worse, erased.
- AI platforms like Perplexity and Google Gemini pull from online content, meaning brands that neglect search performance risk losing control of their message.
- Companies optimizing their SEO and owned content see over 50% of AI-generated responses citing their sources, proving that proactive strategies can shape AI-driven brand perception.
Brands Hedge Against TikTok Risk • As TikTok’s traffic rebounds but remains off app stores, advertisers are diversifying influencer deals across Instagram and YouTube.
- TikTok’s U.S. traffic has rebounded to 90% of pre-shutdown levels, but brands are adjusting deals to include Instagram and YouTube as backup plans.
- Some creators are thriving on YouTube Shorts, but many struggle to replicate TikTok’s engagement, leaving advertisers uncertain about where to invest long-term.
🚀 Future of Commerce
The Shoppable Super Bowl • Tubi is merging streaming and shopping, letting Super Bowl viewers buy game-day gear and themed products straight from their screens.
- The Tubi Red Carpet Shop, powered by Shopsense AI, offers fan apparel, audio gear, and party essentials, turning the game into a retail moment.
- With 97 million monthly users and a free Super Bowl LIX simulcast, Tubi is making a play for advertisers, blending entertainment with e-commerce on a massive scale.
Tariffs Disrupt E-Commerce Playbook • Trump’s crackdown on de minimis, a rule allowing duty-free imports under $800, is forcing Shein, Temu, and even US brands to rethink their strategies.
- The end of the de minimis rule threatens Shein and Temu’s direct-to-consumer model, while 25% of top Shopify stores could face rising import costs.
- Even US brands manufacturing in China aren’t spared – higher tariffs mean possible price hikes on Amazon and beyond, with costs rippling through the entire supply chain.
OpenAI Tests AI Persuasion • OpenAI used Reddit’s subreddit r/ChangeMyView to measure how well its AI models can craft persuasive arguments and the results raising questions about AI’s ability to influence decisions.
- OpenAI claims its latest models rank in the 80-90th percentile of human persuasion skills, showing AI can effectively sway opinions in structured debates.
- This hints at the potential of AI to influence purchasing decisions in product recommendations and ad campaigns – but concerns over manipulation and ethical AI use in commerce are growing.
