We have seen some pretty interesting things unfold in real time: from giant websites losing millions to the unexpected rise of the small influencer. It’s a week of shifts—big and small—and we’re here to get you up to speed.

Get the essential news you need every Friday with our weekly digest. Don’t forget to subscribe to keep up with the latest in marketing.

1. Industry Giants Hit By Google Policy Change

The end of an era? The days of publishers earning easy money from affiliate marketing may soon be over. Major industry players like Forbes, CNN, and Time have faced severe search visibility drops for their affiliate businesses, leading to estimated losses of up to $7.5 million in traffic value.

These publishers had relied on third-party vendors who were given branded subdomains like CNN Underscored and Forbes Advisor and piggybacked on the reputation of their prestigious parent sites to rank well.

This strategy, which some refer to as “parasite SEO,” caught Google’s attention, which then penalised these operations by enacting a Site Reputation Abuse policy. The rest, as they say, is history.

What this means for you:

Google’s new policy may mean that affiliate models relying on third-party partnerships could be at risk. If you’re a publisher relying on such a strategy, consider this your wake-up call. Google may be targeting giant players now, but smaller affiliate setups might be next.

2. Perplexity Enters the Advertising Game

In other news, AI-powered search engine platform Perplexity has debuted advertisements in the form of “sponsored follow-up questions.” Clearly marked as “sponsored,” these ads from brands like Whole Foods and Indeed will appear alongside AI-generated search results. Perplexity has also emphasised that user data won’t be shared with advertisers.

It’s a timely move for a company reportedly closing in on a $500 million funding target at a $9 billion valuation.

What this means for you:

While Perplexity ads are only open to US users for now, it does represent a potential opportunity to reach and engage a fresh, intentional audience.

That said, the “sponsored follow-up questions” format seems to be more applicable for education and problem-solving rather than product hard sells.

3. Google’s Latest Changes and Updates

Going back to Google, it looks like they’re switching things up again with audiences and ads. The platform has rebranded Demand Gen audiences as “signals,” which now serve more as algorithmic hints rather than specific parameters. The result? Advertisers can expect a broader reach, albeit with less control on who exactly sees their ads.

On the other hand, the platform continues its experiment with dynamic ad placement. While sponsored ads used to appear at the top and bottom of organic search results, Google has started placing them in between the latter.

This dynamic ad placement quietly rolled out last year, but it’s been drawing more attention lately as more users report spotting ads embedded within search results.

What this means for you:

The switch to “signals” could mean reaching new high-performing audience segments. However, because you now have less control over your target preferences, you may need to keep a closer eye on your conversion rates and ad spend.

On the other hand, Google’s dynamic ad placement provides a solid opportunity to boost your ads’ visibility. Make the most out of this by crafting ads that perform well no matter where they appear on the page.

4. Influencer Marketing: The Smaller, The Better

Influencer marketing is alive and thriving, but there’s a fascinating trend that’s worth paying attention to.

As brands realise that a large following does not always translate to high engagement, many are turning towards smaller creators—micro and nano influencers—with smaller but more connected audiences.

These creators delivered engagement rates as high as 8.8%—a big deal compared to the mere 1.21% for macro influencers with 100K+ followers.

It’s no longer just about numbers. Yes, brands know that working with smaller influencers costs less, but more importantly, it often leads to more meaningful and authentic interactions with an engaged audience.

What this means for you:

Reach is impressive, but engagement delivers results. Instead of chasing after big names, consider building a network of smaller influencers who truly align with your brand. Look out for comment sections filled with real conversations, and spot relevant discussions that happen even before you approach.

Keep up with the latest industry news with our weekly updates. Subscribe now and stay informed about the trends and insights that matter the most to your business.