Global Ad Costs Rise, CTV Gets Performance Tools, and AI Search Keeps Expanding
Meta Introduces Location Fees for Ads in Certain Countries
New digital service tax charges will increase ad costs in select jurisdictions starting July 2026.
What’s the News:
Meta will begin applying location-based fees to ads delivered in certain jurisdictions starting July 1, 2026, to cover digital service taxes (DST) and similar regulatory costs imposed on the company.
The fee is based on where ad impressions are delivered, not where the advertiser is located. Current fees include Austria (5%), France (3%), Italy (3%), Spain (3%), Turkey (5%), and the United Kingdom (2%).
For example, $100 in ads delivered in Italy will incur a 3% fee, bringing the total to $103 before any applicable VAT.
Why It Matters:
This change increases the effective cost of advertising in several major European markets. While Meta previously absorbed many of these costs, the platform is now passing them on to advertisers as regulatory pressure around digital service taxes continues to grow.
For brands running international campaigns, this means media budgets may stretch less far in affected markets, and cost projections will need to account for the additional charges.
Marketers Should:
Adjust budgets for campaigns targeting affected countries starting July 2026
Factor location fees into media planning and ROI modeling
Monitor regulatory developments that may expand these fees to additional markets
Netflix Expands Ad Platform with Amazon Audiences + Conversion API
The streaming giant continues evolving from premium TV inventory into a performance advertising platform.
What’s the News:
Netflix announced two upgrades to its advertising platform: Amazon Audiences targeting and a new Conversions API (CAPI).
Advertisers can now use Amazon’s shopping and browsing signals to target Netflix viewers, while the new CAPI enables server-side conversion tracking for campaign optimization and reporting.
These additions bring Netflix’s measurement and targeting capabilities closer to the performance infrastructure used on platforms like Meta, Google, and Amazon.
Why It Matters:
Connected TV has traditionally been strong for reach but weak for performance measurement. By adding commerce data targeting and conversion tracking, Netflix is building the infrastructure required for advertisers to treat streaming as a performance channel.
However, as more platforms introduce their own conversion reporting systems, platform-reported performance metrics may become increasingly inflated.
Marketers Should:
Test Netflix as a performance channel, not just a reach channel
Validate reported conversions with incrementality testing
Prioritize first-party data and clean measurement frameworks
OpenAI Scales Back “Instant Checkout” Plans for ChatGPT
The company is shifting away from in-chat purchases as user behavior shows AI is primarily a discovery tool.
What’s the News:
OpenAI is backing away from its earlier plan to introduce Instant Checkout within ChatGPT search results, which would have allowed users to complete purchases directly inside the AI interface.
Instead, the company is pivoting toward a model where transactions occur inside connected retailer apps and websites.
The shift comes after OpenAI found that users primarily rely on ChatGPT for product research and comparison rather than completing purchases.
Why It Matters:
This move highlights a key reality in AI commerce: while AI assistants are effective at synthesizing product information and comparing options, they have not yet replaced the infrastructure and trust systems required for full ecommerce checkout.
For brands, ChatGPT currently functions more like a mid-funnel discovery engine than a direct sales channel.
If transactions remain outside the platform, advertising will likely become an increasingly important monetization path for OpenAI.
Marketers Should:
Optimize product data and website content for AI discovery and recommendations
Prioritize frictionless checkout experiences on owned properties
Prepare measurement frameworks that rely on incrementality, not just attribution
TikTok Expands Search Advertising Capabilities
The platform continues building a search ecosystem powered by AI and user intent.
What’s the News:
TikTok is expanding its search advertising ecosystem with tools like Search Center and keyword-driven ad placements.
The company reports that many users begin searching within seconds of opening the app, and overall search activity on the platform has grown rapidly year over year.
Why It Matters:
TikTok is evolving from a purely discovery-driven feed into a hybrid search and discovery platform.
As ads begin matching user queries, performance creative will need to shift from general scroll-stopping content toward content designed for search intent.
Marketers Should:
Treat TikTok creative like search-native video content
Align hooks, captions, and dialogue with real user queries
Build creative that works both in feed distribution and search results
AI Search Is Growing the Total Search Market
New research shows AI usage is expanding overall search behavior rather than replacing traditional search engines.
What's the News:
New research on AI search usage reveals several key trends in the U.S.:
- AI prompts now account for 17% of total search activity
- 75% of AI usage occurs inside mobile apps
- Combined search usage across traditional engines and AI has grown 16% year-over-year
- Google still holds 75% of total search traffic, while ChatGPT accounts for 12%
Within AI tools specifically, ChatGPT dominates with 86% of usage, followed by Gemini (4.7%) and Perplexity (3.9%).
Why It Matters:
The growth of AI search isn’t shrinking traditional search—it’s expanding the overall search ecosystem.
For marketers, this reinforces that SEO strategy must evolve beyond traditional rankings to include visibility within AI-generated answers and citations.
Marketers Should:
Monitor which AI platforms your audience actually uses
Structure content to increase the likelihood of being cited in brand discovery-oriented AI responses
Treat AI search visibility as an extension of SEO strategy, not a replacement
We’re reinventing performance marketing because everything changed while you were reading this.
We help you navigate this new landscape with data-driven insights, platform expertise, and creative that connects, so your brand not only keeps up, but gets ahead.
Work with Us