Welcome to 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: Learn how Google’s automation, COPPA’s new rules, and shifting ad models are pushing publishers to prioritize subscriptions and rethink monetization.
- Growth: Discover how AI-driven ads, Super Bowl social strategies, and full-funnel marketing are helping brands maximize engagement and conversions.
- The Future of Commerce: Uncover how AI search, Amazon’s direct brand links, and faster checkout tech are transforming the way consumers shop and interact with brands.
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💸 Monetization
Google Automates News Pages • Starting in March, Google News will auto-generate publication pages, eliminating publisher customization and manual updates.
- Publishers will lose control over logos, titles, and custom sections, as Google replaces them with automated formatting based on site favicons and names.
- While content eligibility remains the same, this shift reduces publisher influence, making structured data more crucial than ever for visibility.
Doubling Down on Subscriptions • The New York Times and News Corp are proving that ad revenue alone isn’t enough – subscription models and AI deals are helping drive sustainable growth.
- The New York Times now earns nearly 3x more from subscriptions than digital ads, but continues to expand ad supply and improve ad targeting capabilities to bridge this gap.
- News Corp’s Dow Jones unit saw subscription revenue jump 4%, while digital ad revenue remained flat, with declines blamed on platform algorithm changes impacting traffic.
ICYMI, COPPA Overhaul Incoming • The FTC’s stricter child privacy rules will require publishers to secure parental opt-in for targeted ads, possibly disrupting monetization strategies.
- Publishers could see ad revenue drop up to 40-60% as behavioral targeting becomes restricted, pushing a shift toward contextual advertising for children’s content.
- Compliance demands major operational changes, including new age verification, data retention policies, and consent mechanisms, with enforcement set for early 2025.
📈 Growth
Meta Enhances AI Ad Targeting • New updates to Meta’s Advantage+ give advertisers more automation and real-time insights, reshaping how campaigns are optimized.
- Advantage+ lead campaigns now apply full AI automation, with early tests showing a 10% reduction in cost per qualified lead.
- A new Opportunity Score in Ads Manager rates campaigns 0-100, providing real-time recommendations that have cut ad costs by 5% for early adopters.
Super Bowl Goes Social • Brands leaned into creators, viral stunts, and platform diversification to drive engagement beyond traditional TV ads – offering key lessons for digital marketers.
- Creator-led content stole the spotlight, with brands like Pringles and Poppi leveraging influencers instead of big-budget celebrity ads to build authentic, Gen Z-friendly campaigns.
- Viral engagement tactics like Coors Light’s intentional ad typo and Doritos’ fan-generated content contest proved that social-first strategies can rival (or even surpass) expensive TV spots.
Full-Funnel Wins Q4 • According to a recent report by Nest Commerce, e-commerce brands using full-funnel marketing saw 38% higher conversion rates, while bottom-funnel-only brands saw a 28% YoY decline.
- Search-attributed revenue surged 500% YoY, with TikTok ad spend up 115% and Instagram Reels CTRs rising 70%, highlighting the power of multi-channel strategies.
- Tailored creative strategies mattered as platform-specific content drove 55% higher ROAS, reinforcing the need for diversified, dynamic ad approaches across search and social.
🚀 Future of Commerce
AI’s Impact on Shopping Habits • AI-driven search tools like Perplexity and Deep Research are transforming how consumers research and buy products – forcing brands and publishers to rethink visibility.
- AI search curates recommendations, compares prices, and directs users to checkout, reducing reliance on traditional product review sites and altering consumer decision-making.
- With Google integrating AI summaries in 47% of searches, brands and publishers must shift from SEO to GEO (Generative Engine Optimization) to ensure they remain visible to shoppers following this new path.
Amazon Tests Direct Brand Links • In a surprising move, Amazon is testing a feature that sends shoppers to brand websites when it doesn’t stock a searched product.
- Select U.S. customers using the Amazon Shopping app may now see external brand links alongside search results, allowing direct purchases outside Amazon.
- While Amazon claims this enhances customer convenience, it could also serve as a data-driven strategy to track demand and identify brands worth courting or stocking.
Retailers Demand Faster Checkout • 78% of U.S. online merchants are prioritizing tech upgrades to speed up checkout and drive conversions, according to a new PYMNTS Intelligence report.
- One-click checkout leads the wishlist, with 45% of retailers pushing PSPs for seamless payment options to cut friction and reduce cart abandonment.
- While secure card-on-file (27%) and biometric authentication (25%) are gaining traction, merchants remain hesitant about newer solutions like tokenization for checkout security.
