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: Learn how diverse publishers are using virtual product placements to drive ad revenue, influencers are turning to newsletters for direct audience engagement, and SEO strategies are shifting from optimization to training AI for better content visibility.
- Growth: Discover how retail media networks are thriving despite the persistence of cookies, and how brands are building stronger connections by partnering with creators for authentic cultural moments.
- The Future of Commerce: Uncover the rapid rise of mobile shopping, the growing dominance of e-commerce in retail, and the expanded opportunities for Shopify merchants through YouTube’s Shopping affiliate program.
Virtual Ads, Real Impact • Diverse publishers are using virtual product placements to unlock new ad opportunities and bring more ad dollars their way.
- The Diverse Media Alliance is pushing for fair ad spending by highlighting opportunities with minority-owned publishers, addressing the reluctance of many advertisers to invest in these valuable multicultural audiences due to their perceived limited scale compared to mainstream sites.
- Virtual product placements allow minority-owned media to transform any scene into ad space, enhancing content value and attracting more advertiser interest.
Building Audiences Beyond TikTok • Influencers are embracing newsletters like Substack and Beehiiv to develop direct connections with their most loyal fans and ensure a steady income.
- Newsletters help creators bypass unpredictable social media algorithms, allowing them to reach and engage a more committed audience directly.
- For brands, sponsoring newsletters provides access to a creator’s most engaged followers, leading to stronger connections and better ad performance.
Training AI, Not SEO • Forget “optimization”—it’s time to think of SEO as training search engines, teaching them how to best understand and present your content in an AI-driven world.
- The recently obtained Information Gain patent is focused on determining what a user might be interested in next, refining how AI-driven search results serve content.
- This encourages a shift from keyword stuffing to focused, topic-driven content, helping SEOs and publishers align with AI-driven search processes and potentially improve rankings by anticipating user needs.
Cookies Crumble, Retail Media Shines • Cookies or not, retail media networks thrive by leveraging first-party data to drive targeted advertising.
- Retail media networks are booming because they use first-party data from retailers like Amazon, Walmart, and Target, making them less dependent on cookies for targeted advertising.
- Despite cookies sticking around, many brands are investing more in retail media networks, recognizing their ability to reach specific audiences and drive better ad performance without relying on third-party tracking.
Brands Credit Creators, Finally • Companies are turning to viral creators to join cultural moments more authentically and ensure creators receive proper credit and compensation.
- Brands like Netflix, Lyft, and Zillow are now working directly with creators like recent viral sensation Jools Lebron, recognizing that authentic partnerships help them connect better with audiences.
- This shift highlights a growing recognition of the importance of crediting creators, particularly those from marginalized communities who have been overlooked in the past.
High-Intent Searches, High Rewards • Signs are pointing to Reddit launching its own search ads business soon, leveraging high user intent and unique content for better ad targeting.
- Recent hires and statements from Reddit’s leadership indicate that the platform is preparing to introduce search ads, capitalizing on its unique, high-intent user base.
- The platform is enhancing its search capabilities and exploring AI-driven search options, signaling a push to integrate more targeted advertising directly within search results.
Mobile Shopping Takes the Lead • While desktop still leads slightly in online shopping, mobile is quickly catching up, driven by convenience and well-designed experiences.
- Mobile shopping is gaining ground, with 51% of last year’s online holiday purchases happening on phones and mobile sales set to overtake desktops by 2025.
- Groceries, cosmetics, and apparel are popular on mobile due to ease of use and repeat purchases, while higher-priced items still see more sales on desktop due to trust and user experience challenges.
Retail’s Future Lies Online • Despite a slowdown, e-commerce is still the main driver of retail sales, making up over half of all new spending.
- E-commerce now accounts for 53% of retail growth, even though it makes up just 16% of total retail sales, highlighting its increasing influence on the market.
- Larger retailers like Amazon and Walmart continue to thrive online, while many smaller e-commerce businesses see flat or declining growth, underscoring the competitive landscape.
Shopify Brands Go Live • YouTube and Shopify have expanded their partnership, allowing thousands of additional brands to join YouTube’s Shopping affiliate program and feature their products in creator videos.
- More Shopify merchants can now sell their products directly on YouTube, reaching a wider audience through the platform.
- A new Chrome extension lets YouTube creators easily tag products from Shopify brands and see potential earnings, streamlining the process of creating shoppable content.
