Crypto News: Navigating Holiday Ads in a Post-Election Landscape 🎁

Navigating Holiday Ads in a Post-Election Landscape 🎁

Welcome to Katalys Connect - your weekly 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: Discover how publishers are responding to the FTC's new "Click to Cancel" rule, new findings on AI's use of premium publishers' data, and DPG Media's example of breaking from Google's ad ecosystem.
Growth: See how brands and agencies are adjusting ad strategies amid election uncertainty, Microsoft's Copilot ad tools, and United Airlines' proposed upgrades to its data-driven ad network.
The Future of Commerce: Discover how TikTok and Amazon are taking an interactive approach to holiday shopping, while Perplexity steps up to challenge Amazon with AI-driven e-commerce.

💸 Monetization

Click to Cancel Showdown • The FTC's new rule has sparked a clash with ad tech heavyweights, pushing the industry to reconsider its approach to subscription models and consumer trust.

The IAB, alongside telecom and security groups, argues that the FTC's rule may raise churn rates, impacting subscription-based revenue models and potentially forcing companies to adjust pricing or service quality.
For publishers, this rule challenges friction-based subscription retention. With first-party data becoming essential in a cookieless era, maintaining trust through transparent value exchanges could be critical to sustainable user engagement and long-term growth

Undisclosed AI Data Reliance • New research from Ziff Davis reveals that top AI firms lean more on premium publisher data than they acknowledge, fueling publishers' calls for stronger copyright protections and fair compensation

Ziff Davis' study found that nearly 10% of OpenAI's OpenWebText dataset links were sourced from 15 major publishers, underscoring a significant reliance on premium content for model training.
While some publishers negotiate deals for real-time content use, Ziff Davis and others seek clarity on AI's use of historical datasets, especially as major lawsuits question the legality of scraping publisher content without permission.

DPG's Google-Free Ad Leap • DPG Media, a Belgian media group, has nearly eliminated Google from its ad ecosystem, building an independent ad platform and pioneering direct response formats to boost revenue and compete with Big Tech.

DPG phased out Google's ad tech over five years, citing transparency and control issues. It now uses Microsoft and FreeWheel ad servers and keeps Google to under 5% of digital revenue.
DPG's platform attracts smaller advertisers, like government agencies, with lower ad fees and boosted return on ad spend. It serves as a model for other publishers seeking independence through collaboration and unique tech offerings.

📈 Growth

Brands Brace for Election Impact • With uncertainty surrounding the U.S. presidential election, some brands and agencies adjusted ad strategies to navigate a potentially volatile media environment

Many agencies advised brands to consider alternative channels, like Facebook and holiday-focused networks, to maintain impressions without directly engaging with potentially polarizing news coverage.
Some brands, particularly in health and wellness, plan to use the election as a moment to amplify awareness with messaging tailored to address consumers' concerns and maintain brand relevance.

Microsoft Expands Copilot Ad Tools • Microsoft's latest updates to Copilot introduce enhanced ad management tools, including advanced video targeting, streamlined shopping campaigns, and detailed performance insights for improved campaign control.

New Copilot tools, like the performance snapshot, aim to provide brands with quick, actionable insights into campaign health, while expanded video ad options allow for more precise targeting and easier cross-platform management with Google Ads imports.
Microsoft's improved shopping campaign setup and product group management enable brands to simplify workflows, offering a smoother way to manage and scale ad efforts across different formats.

United's In-Flight Ad Push • United Airlines is enhancing its ad business with Starlink-powered Wi-Fi, allowing delivery of targeted, real-time ads across in-flight screens and digital platforms to millions of passengers each year.

United's Kinective Media leverages data from over 100 million unique passenger IDs, using flight booking and MileagePlus loyalty information to build detailed audience segments for targeted advertising.
United's ad platform opens new revenue opportunities across multiple verticals and competes with major ad networks by tapping into a unique and captive audience.

🚀 Future of Commerce

Perplexity Enters the Shopping Game • With its new "Pro Shop" feature, Perplexity is bringing e-commerce directly to its AI-powered platform, offering users a seamless way to research and buy products without leaving the app.

Supported by Jeff Bezos and targeting an $8 billion valuation, Perplexity is negotiating with major brands for potential partnerships, including talks with Nike about "sponsored questions" as an ad format.
This new retail push aligns with Perplexity's broader strategy of challenging big players like Google and Amazon by integrating e-commerce into its AI-powered search engine.

TikTok Shop's BFCM Plan • TikTok Shop is shaking up Black Friday by showcasing exclusive items from smaller DTC brands and leveraging creators to highlight new offerings, aiming to differentiate from giants like Amazon.

Since its September launch, TikTok Shop has tripled its monthly users, with fashion and beauty among the top categories, while gross sales have surpassed $1 billion, showcasing its rapid growth in social commerce.
Major brands like Dyson and Fenty Beauty are joining TikTok Shop for the first time, boosting its appeal for Black Friday and signaling TikTok's growing influence in the holiday shopping landscape.

Amazon's Virtual Holiday Showroom • Amazon's new Virtual Holiday Shop offers an immersive 3D experience with showrooms, interactive elements, and over 300 curated holiday gifts, redefining product discovery for seasonal shoppers.

Some experts see Amazon's virtual shop as a long-term data collection effort, helping the company understand user preferences and improve future iterations for smoother navigation and tailored discovery.
Competing with Walmart's own virtual shopping initiative, Amazon's new platform signals a shift toward interactive online retail, but experts note it may need refinements like integrated search and curated categories to better meet user needs.

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