UK Publishers Say Pay Up – Inside the ‘Consent or Pay’ Trend

Katalys Connect UK Publishers Consent or Pay

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: Explore how Google’s AI links are stirring publisher concerns, while new consent models and Meta’s Stories monetization reshape how media companies and creators generate revenue.

  • Growth: Learn how brands are building loyalty on Substack, Reddit is giving users new ad controls, and rideshare ads are becoming a key channel for marketers targeting urban audiences.

  • The Future of Commerce: Discover how Amazon’s spring sales event, Klarna’s growing financial ecosystem, and Perplexity’s subtle AI ads are reshaping shopping behaviors and payment trends.
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Monetization

💸 Monetization

Google AI Links Shift • Google is testing AI Overviews that link back to its own search results, potentially impacting traffic to external publishers.

  • Despite claims that AI Overviews would help users “discover external content,” new tests show prominent links directing users to additional Google searches, while external publisher links are minimized in side panels.

  • This change has led to a noticeable drop in click-through rates (CTR) for external sites, raising concerns about Google’s commitment to supporting independent publishers amidst growing search volume.

Testing Consent or Pay • The Guardian has joined a growing list of UK publishers adopting “consent or pay” models, asking readers to either accept personalized ads via cookies or pay a monthly fee for an ad-lite experience.

  • The move follows similar shifts by publishers like The Sun, The Times, and GB News as stricter UK privacy regulations and a rise in cookie rejections cut into monetizable ad impressions and force publishers to protect ad revenue.

  • Publishers warn that declining consent rates are undermining their ability to compete for advertising dollars, as fewer users opting into tracking reduces their value to advertisers seeking scale and data-driven targeting.

Monetizing Facebook Stories • Meta has introduced a new monetization feature for creators, allowing them to earn from views on their Facebook Stories.

  • Creators in the Content Monetization program can now earn money from public Stories, enhancing their revenue potential with minimal additional effort.

  • This move is part of Meta’s strategy to attract creators back to Facebook amidst competition from platforms like Instagram and TikTok, following a recent bonus program aimed at incentivizing content sharing.
Growth

📈 Growth

Substack’s Brand Revolution • Brands are increasingly turning to Substack to foster deeper connections with consumers, free from the constraints of social media algorithms.

  • Substack allows brands to create long-form content that explores niche topics and personal insights, significantly enhancing customer engagement.

  • By establishing their own editorial arms, these brands can address meaningful conversations and culture topics, offering a platform for authentic dialogue beyond traditional marketing tactics.

Block Ads, Boost UX • Reddit introduces a feature allowing users to block unwanted advertisers for a year to enhance the ad experience on its platform.

  • Users can click “Hide” on an ad to prevent future ads from the same advertiser for at least a year, with the option to re-hide after this period.

  • While Reddit aims to improve user satisfaction, there are concerns about potential limits on how many advertisers users can block to maintain ad revenue.

Rideshare Ads Boom • Brands are betting big on backseat screens, as rideshare ads become a fast-growing channel for retail, tech, and entertainment marketers eager to capture on-the-go consumers.

  • Uber and Lyft are fueling this momentum, with Uber’s in-car ad inventory jumping to 50,000+ vehicles and T-Mobile’s Octopus Interactive network topping 130,000 screens, giving brands the tools to deliver geotargeted, high-impact video ads where passengers are primed to engage.

  • Agencies say rideshare placements are now essential for reaching urban audiences, layering hyperlocal messaging and app-based video ads into multichannel campaigns as DOOH spending soars toward a projected $3.5 billion by 2027.
Future of Commerce

🚀  Future of Commerce

Perplexity’s Ad Evolution • Perplexity is strategically developing its advertising business to integrate seamlessly into user queries without disrupting the search experience.

  • The company is currently in the “product stage,” working with a limited number of advertisers and prioritizing user experience over traditional ad metrics like bids and budgets.

  • Perplexity employs a CPM pricing model focused on driving awareness, with plans to incorporate shoppable ads that enhance the research experience for users.

Prime Time in Spring • Amazon’s Big Spring Sale returns March 25-31, positioning itself as a seasonal counterpart to Prime Day and October’s Big Deal Days, with discounts of up to 40% on spring essentials and end-of-season winter items.

  • The seven-day event will feature daily deal drops from major brands, while Prime members unlock deeper discounts and exclusive offers on select items.

  • With Amazon driving major shopping moments year-round, even brands outside the marketplace can capitalize on this surge in consumer spending by launching parallel promotions to ride the wave of shopper attention.

Klarna’s Expanding BNPL Empire • Klarna’s IPO filing reveals how its app is powering a fast-growing pay-later ecosystem, combining payments, retail banking, and advertising to fuel global expansion.

  • Klarna hit $105B in GMV with 93M active users and 675K merchants, while scaling ad revenue to $180M by leveraging rich shopper data for targeted ads.

  • With deposit-taking services reaching $9.5 billion and plans to expand into retail banking, Klarna’s ecosystem now spans payments, savings, and targeted advertising, positioning it to rival traditional card networks and banks.