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 Perplexity AI’s new ad revenue sharing is creating fresh income streams, why major platforms are driving strategy shifts, and how Google’s uncertain core update timeline affects publishers.
- Growth: Explore what percentage of e-commerce site visitors go unidentified, how Google’s new controls for Performance Max address advertiser concerns, and the readiness of marketers for a cookie-less future.
- The Future of Commerce: Learn how rewards programs drive mobile wallet adoption, why Gen Z consumers are rethinking online shopping due to overconsumption, and how anti-theft frustrations are pushing shoppers to Amazon.
- Katalys Insights: Dive into the Katalys team’s takeaways from ASE 2024 including how publishers and brands are adapting to Google’s algorithm changes, the evolving role of paid channels, and perspectives on new strategies.
Ads on Perplexity • Perplexity AI introduces ads with revenue sharing for content creators, transforming AI search monetization and marking a shift from Perplexity’s ad-free model.
- Publishers will earn a share of ad revenue when their content answers sponsored questions, providing a new income stream.
- Partners will also receive free access to Perplexity’s Online LLM APIs, enabling them to create custom answer engines tailored to their websites.
Attention Competitors • Major platforms like TikTok and YouTube capture most user attention, requiring publishers and advertisers to rethink strategies to adapt to the shifting ad landscape.
- The collective reach of premium publishers is essential to compete with tech giants like Google and Meta, making uniform ad products and metrics critical for success.
- Embracing innovative measurement methods and transparent practices to support a healthier digital ad ecosystem will drive mutual growth for both publishers and advertisers.
Core Update Uncertainty • Google’s next core update timing remains unclear, leaving publishers anxious about ongoing issues like image thumbnail visibility.
- Persistent complaints about missing image thumbnails have led to Google locking down the complaint thread, increasing frustration.
- Recent ranking volatility could indicate Google testing changes, adding to the anticipation and uncertainty surrounding the forthcoming core update.
Ecommerce Identity Crisis • Up to 85% of ecommerce site visitors go unidentified, hindering retailers’ efforts to boost customer engagement and sales.
- A Bluecore report shows that online retailers only identify 15-27% of site visitors, impacting their ability to connect and engage with customers.
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Businesses with higher identification rates see a 53% boost in repeat purchases, signaling a need to invest in updated solutions.
Max Control • Google rolls out new controls and transparency features for it’s AI-powered buying tool Performance Max, tackling advertiser concerns to improve transparency and effectiveness of ad placements.
Now Advertisers can see specific YouTube videos where their ads appear and use content suitability filters to tailor ad placements based on risk tolerance.
- New Performance Max reporting features break down how different creative assets perform, revealing what drives conversions.
Ready or Not • As Google shifts the decision to consumers likely to opt out, only 60% of marketers feel ready for third-party cookie deprecation – a decrease from 78% in 2022.
- Overall dependence on cookie-based data has decreased, with 49% of marketers still relying on it, compared to 75% a few years ago.
- Despite efforts to harness first-party data, only 26% of marketers successfully integrate data across their organizations for actionable insights.
Rewards Rule Digital Wallets •Rewards programs are a major driver for mobile wallet adoption, with eCommerce shoppers finding them especially appealing for their digital transactions.
- 33.6% of mobile wallet users cite rewards as a key reason for their latest online purchase, compared to 29% for in-store purchases.
- 28% of consumers plan to use digital wallets for rewards and discounts in the next three years, with 22% viewing these perks as a major incentive for continued use.
Gen Z, De-influenced • Social media’s role in driving overconsumption is prompting some young consumers to rethink their online shopping habits.
- Nearly 40% of Americans have bought products via social media ads in the last year, but 88% of Gen Z shoppers now feel “de-influenced” to make these purchases.
- Consumers cite distrust of influencers, concerns about overconsumption, counterfeit products, feeling overwhelmed by ads, and negative past experiences as key reasons for avoiding social media purchases.
From Store to Screen • Frustrated shoppers abandon in-store hassles for the ease online shopping, driving a shift in buying behavior.
- As retailers struggle with shoplifting, the impact on their bottom lines is mixed, with some experts arguing that anti-theft measures may drive more customers online, thus harming brick-and-mortar stores.
- Amazon’s CEO highlights the overall user experience and its expanded pharmacy services resulting in more customers to switching from physical stores.
ASE 2024 • Last week the Katalys team jetted to NYC to attend Affiliate Summit East, connecting with existing clients and building promising new relationships. Here are their takeaways!
- Publishers are reacting to Google’s recent algorithm change by thinking more omnichannel and offering brands more packaged opportunities across SEO, SEM, social, and streaming.
- There was a strong presence among media buyers and it was clear that brands understand following the Google shift, they need to utilize paid channels to maintain the same level of traffic they once had using only SEO tactics.
- Both brands and publishers are very open to new monetization opportunities and looking for efficiencies in operations to make execution as simple as possible without a large investment.
- The Katalys team is excited to help solve the challenges both publishers and brands are facing in the commerce space today by providing them yield optimization or new branding opportunities!
