Beyond Prime Day ??

Welcome to Katalys Connect?- your weekly shortcut to the latest in performance marketing.

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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: Discover how India’s new law challenges Google and Meta’s dominance, while Future’s new content studio and integrated data strategies aim to thrive in a post-cookie world.
• Growth: Explore how AI-generated content boosts productivity and engagement but raises authenticity concerns; retail media now spans the entire marketing funnel, and Amazon’s new ads help non-sellers expand their reach.
• The Future of Commerce: Learn about Pinterest’s new AI tool that enhances product images, Gen Z shifts search habits to social media, and Amazon Prime Day’s anticipated record sales, with competitors launching major discounts

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?? Monetization

The Fair Ad Revenue Fight ? India considers new law to ensure news publishers get fair compensation from Big Tech, echoing global battles for a fairer digital marketplace.

• Australia’s 2021 law enabled local media to strike better deals with Google and Meta, resulting in $130 million in transfers from the two last year. However, Meta’s refusal to renew these contracts in 2023 raises concerns about the law’s long-term effectiveness.
• Last year Canada saw Google commit $75 million annually to a state-run fund for local media, meanwhile Meta opted for a local news blackout – challenging the efficacy of regulatory efforts.

Future-Proofing Ad Revenue ? As third-party cookies phase out, media company Future launches a branded content studio to boost direct ad sales and leverage first-party data.

• Future Creative will craft engaging, effective custom advertising packages using first-party data, a crucial shift as Google’s elimination of third-party cookies will reduce the value of open auction ad inventory.
• With 25% of Future’s digital ad revenue already from branded content, the new studio aims to further standardize and expand these offerings.

Bridging Data Gaps ? Relying solely on first-party data isn’t enough – today’s marketers must supplement with second-party partnerships and third-party enrichment for a comprehensive strategy.

• First-party data, while accurate and valuable, is limited to existing customers, often fragmented, prone to quality issues, and lacks broader behavioral insights needed to execute effective marketing campaigns.
• Strong relationships between publishers and brands can help tap into quality audiences and gain valuable contextual insights. By collaborating on custom content, publishers and brands can utilize first-party data and proprietary insights, ensuring content resonates with the audience and meets goals.

?? Growth

AI’s Social Media Takeover ??By 2026, nearly half of businesses’ social media content will be AI-generated, boosting productivity and engagement but also raising concerns about authenticity and misinformation.

• GenAI improves workflows by automating tasks, generating ideas, and creating personalized content, with 90% of businesses reporting time savings, 73% seeing increased engagement, and 49% stating AI content outperforms human-created content.
• Despite its benefits, GenAI poses risks like content blandness and misinformation, with 43% of businesses concerned about authenticity and 94% worried about misinformation, highlighting the need for human oversight to ensure quality and accuracy.

Embracing Full-Funnel Media?? Media agencies are leveraging retail media to span the entire marketing funnel, integrating data from sales to optimize strategies.

• Retail media networks are evolving from lower-funnel tactics to full-funnel marketing solutions, enabling media agencies to address a broader range of objectives from awareness to advocacy.
• Media agencies are upgrading their commerce efforts by connecting data from various channels to create a seamless customer experience, emphasizing the breakdown of silos and the integration of budgets and objectives for maximum effectiveness.

Amazon’s New Ad Frontier ? New lead generation ads are now available for non-Amazon sellers, leveraging Amazon’s vast network to expand customer reach.

• Amazon’s new ad feature allows businesses that don’t sell on its platform to generate leads using display ads across Amazon’s properties, including Twitch and IMDb, tapping into Amazon’s extensive data ecosystem.
• This move levels the playing field for businesses of all sizes and signals Amazon’s push to compete more aggressively in the digital advertising space, expanding its influence beyond its e-commerce platform.

?? Future of Commerce ?

Pinned Perfection ??Pinterest unveils its AI background generation tool for product shots, enhancing image appeal without altering the main product.

• The “Canvas” model separates foreground and background in product images using advanced segmentation and detailed captions, ensuring high accuracy and alignment with Pinterest’s visual styles.
• This tool helps brands create diverse, appealing Pin images with ease, enhancing product presentation and engagement on Pinterest by allowing customization based on different design approaches.

Gen Z’s Social Search ??Gen Z prefers social networks for topics like gift ideas and makeup while relying on Google for actual services and restaurants.

• Gen Z is transforming search behavior by favoring social media platforms like TikTok for topics such as gift ideas and hair & makeup, with 40% using TikTok compared to 28% and 25% on Google, highlighting the growing influence of social media in consumer decisions.
• Gen Xers prefer Google for a broader range of searches, such as gift ideas (86%) and financial services (69%), compared to Gen Z’s 28% and 54%, highlighting a generational divide where Gen Z favors social media for lifestyle searches while Gen X relies on traditional search engines.

Prime Day Sales Surge ? Amazon Prime Day sales are expected to hit $14 billion, reflecting a 10.5% increase from last year.

• Prime Day is expected to generate $7.1 billion in sales on Day 1 (an 11.3% increase) and $6.9 billion on Day 2 (a 9.2% increase), with discounts on electronics, clothing, home goods, sporting goods, and more.
• Retail giants Walmart and Target have launched major July discount events to compete with Prime Day, aiming to capture part of the $38.8 billion Americans are expected to spend on back-to-school merchandise.

Meet You in NY?? This month’s must-attend event is?Affiliate Summit East?–?the largest affiliate marketing event on the East Coast.?

• From July 29th – 30th, join 4,500+ industry leaders including advertisers, publishers, e-commerce sellers, affiliates, and media buyers.
• Gain insights from sessions covering AI-powered e-commerce, advanced ad strategies, micro-influencer campaigns, and more
• Engage in high-impact networking at the Meet Market, known for its speed networking format, ideal for forging new partnerships and generating leads. Will you be attending??Reply to this email to connect with the Katalys team at ASE!

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