🚀 Brands Bet Big on Instagram, While Publishers Test New Facebook Strategies

Plus - Google faces legal heat for AI search practices, Substack offers TikTok creators a safety net, and X hopes AI ad tools can help reclaim ad revenue

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: Discover how Chegg's lawsuit against Google's AI Overviews could set a legal precedent for publishers fighting traffic loss, while Facebook Channels and Substack's video push offer new paths to audience engagement and revenue. Growth: Learn how Instagram is pulling ahead in brands' social strategies, X is leaning into its Grok-enabled AI ads, and Adobe's new data collaboration tool is delivering better ad performance. Future of Commerce: Explore how AI is transforming e-commerce with smarter sizing tools and warehouse tech, while tariffs weigh on consumer confidence and cashierless checkout expands across sports arenas. ⭐ Katalys Featured Program   Calling All Wellness Affiliates • Kratom has emerged as a billion-dollar industry and continues to demonstrate rapid growth in the US. Don't miss your chance to join this thriving market through the MitWellness affiliate program on Katalys! Who they are: MitWellness is a leader in premium kratom extracts, setting the industry standard with lab-grade purity, precise servings, and unmatched quality.  Why join: Earn a starting 30% commission per sale, with VIP rates for top partners, and promote confidently with a program that supports a diverse range of traffic types. Affiliates - Ready to maximize your earnings with the MitWellness affiliate program? Access our blog here for more info and next steps. Brands - Interested in accelerating your growth through Katalys? Contact us to get started today. 💸 Monetization Chegg vs. Google AI • Chegg has filed a lawsuit against Google, alleging that Google's AI Overviews hijack its content, cut site traffic, and threaten its business model - potentially setting a precedent for publishers challenging AI-driven traffic loss. The lawsuit accuses Google of monopolistic practices, forcing companies like Chegg to supply proprietary content for search visibility while keeping users on Google instead of driving site traffic. Citing reciprocal dealing, monopoly maintenance, and unjust enrichment, Chegg argues Google profits from its content without compensation and contributed to a 49% drop in non-subscriber traffic year over year. FB Channels Gain Traction • Publishers are seeing small but engaged audiences on Facebook Channels, using the platform to share breaking news and topic-specific content. Channels are driving targeted referrals by reaching users who primarily engage with video feeds rather than traditional posts, expanding reach to audiences who might otherwise miss shared links. While less impactful than WhatsApp Channels, publishers find Facebook Channels useful for building direct, loyal audiences, with success depending on post timing, content relevance, and avoiding user fatigue. Substack Pushes Video Monetization • Substack now allows creators to monetize video posts directly from its app, aiming to attract TikTok creators amid platform uncertainty. Creators can now publish paywalled video posts, reach subscribers with notifications, and track metrics like views, new subscribers, and estimated revenue growth. Substack reports video creators grow revenue 2.5 times faster than non-video users, with 82% of its highest earners using video - while a new $20 million fund guarantees creators won't lose income by switching platforms. 📈 Growth   Meta's Ad Dominance • Facebook and Instagram continue to dominate brand marketing, but Digiday's latest research shows Instagram pulling ahead in both usage and perceived effectiveness. A recent Digiday survey found that 96% of brands used Instagram for marketing, compared to 86% for Facebook, with Instagram leading as the best social media platform for branding (64%) and conversions (42%). Ad spend remains inconsistent across both platforms, but Instagram consistently attracts larger budgets, with 46% of brands allocating significant spend in Q1 2025, up from 41% in Q3 2024.   X Unveils AI Ad Tool • X, formerly known as Twitter, has launched Grok-powered AI-generated ads, letting marketers instantly create tailored ad copy, images, and CTAs by inputting a website URL. The tool scans homepage content to generate sponsored posts, with full editing control for brands to refine creatives, while also providing AI-driven performance insights. X is pitching Grok, its generative AI chatbot, to rebuild advertiser trust after brand safety concerns, highlighting Shopify and IPG as key partners, as the platform works to reclaim ad revenue under Musk's leadership. Adobe Powers Data Collaboration • Adobe's Real-Time CDP Collaboration now allows brands and publishers to securely share first-party data for more precise, privacy-focused advertising. The platform offers a clean room environment for audience targeting and measurement across display, video, and streaming channels, while keeping customer data protected. Early pilots with Coca-Cola, NBCUniversal, and GroupM Wavemaker delivered 2x more efficient conversions, 10x better match rates, and a 90% lift in audience onboarding, with Warner Bros. Discovery now joining the initiative. 🚀 Future of Commerce   AI Tackles Fashion Returns • Online retailers are using AI-driven sizing tools, selfie-based fit predictions, and smart warehouse tech to reduce costly clothing returns. New AI companies are using customer selfies, height, weight, and AI modeling to recommend accurate clothing sizes, tackling the 70% of returns caused by fit issues and saving brands up to $46 per return. In warehouses, AI-powered cameras and robots verify product details, update inventory, and catch packing errors in real-time, cutting incorrect shipments by 90% and preventing returns before they happen. Tariffs Hit Consumer Confidence • Consumer sentiment has dropped sharply as concerns grow that new tariffs will fuel inflation, squeezing household budgets and business activity. The University of Michigan's consumer survey shows inflation expectations jumped to 3.5% in February, up from 3.2% in January, with 40% of consumers now citing tariff concerns, compared to less than 2% before the election. Business confidence is also slipping, with S&P Global's PMI falling to a 17-month low, and the New York Fed reporting input prices rising at their fastest pace in two years. Cashierless Checkout Expansion • State Farm Arena, home of the Atlanta Hawks, has launched the Hawks Express store, offering frictionless shopping powered by AiFi and Verizon 5G. Shoppers can enter, grab items, and leave without checkout lines, as AI-powered cameras track purchases and automatically charge their mobile payment method. AiFi now powers over 280 autonomous stores globally, including 74 stadium locations in 2024, reflecting the growing adoption of cashierless tech in high-traffic venues. 👍 Was this valuable? We strive to deliver engaging, high-value content to you weekly. Did we hit the mark? Let us know your feedback: Excellent | Good | Subpar © Katalys 2025 All Rights Reserved Katalys LLC, 315 S COAST HWY 101 # 528, Encinitas, California 92024, United States Unsubscribe Manage preferences