E-Commerce Exodus: Who’s Making Platform Moves 

Welcome to 2025! This is 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: Learn more about Google’s AI-driven search evolution, Bluesky’s traffic-driving potential, and the implications of Honey’s affiliate lawsuit
  
• Growth: Explore how Google’s latest update aims to rebuild marketers’ trust, grocery RMNs revolutionize targeted ads, and Comcast’s plans to simplify ad buying for small businesses.
  
• The Future of Commerce: Uncover the details about TikTok’s looming ban, Amazon sellers’ shift to new platforms, and how AI tools are transforming post-holiday returns.

 📅 Featured Event

Affiliate Summit West • Next month the biggest affiliate marketing event returns to Las Vegas, where 7000+ affiliates, advertisers, e-commerce sellers, networks, and tech suppliers connect to build strategic partnerships.

• Why Attend: From February 2nd to 5th, you’ll discover unparalleled networking opportunities – with over 77,000 connections made at last year’s event, it’s the place to diversify partnerships and drive success.
  
• Meet Us There: The Katalys team will be on-site to share how to streamline your paid and performance marketing strategies, unlocking new growth opportunities for you this year.

Interested in a 1:1 meeting? Request your time here before spots fill up!

💸 Monetization

AI Apps Reshape Search • Google’s shift to AI tools like Gemini and Project Astra creates new challenges for publishers, as these tools replace the search box as users’ primary interface for content discovery.

• Gemini’s integration with platforms like Google Maps and Project Astra’s multimodal capabilities signal a move toward AI-driven search experiences that bypass traditional web traffic pathways.

• Publishers must adapt to a future where AI apps, not search boxes, drive user engagement, requiring new strategies to maintain visibility and relevance in an evolving ecosystem.

Leaving X Behind • Bluesky and Threads represent starkly different visions for social networks, especially in moderation, user control, and publisher relevance.

• Bluesky has emerged as a surprising ally for publishers, fostering link-sharing and driving more traffic compared to Threads and X. Threads, by contrast, downplays hard news and prioritizes algorithmic content over publisher-driven links.

• Bluesky’s user-focused revenue strategies, like custom domains and subscriptions, aim to avoid advertiser-driven “enshittification,” whereas Threads is already poised to integrate Meta’s aggressive ad ecosystem, which could deprioritize publisher interests.

Honey Faces Affiliate Lawsuit • Creators allege PayPal’s Honey browser extension unfairly replaces affiliate links, redirecting commissions and depriving them of revenue.

• The lawsuit, led by Legal Eagle’s Devin Stone, challenges Honey’s use of last-click attribution, arguing it exploits industry norms deceptively. A ruling could reshape affiliate marketing practices.

• Publishers and creators rely on transparent affiliate relationships. If Honey’s actions are upheld, it could weaken trust in affiliate programs and incentivize similar behavior across platforms.

 Growth

Tag Assistant Reimagined • Google merges Tag Assistant tools into one streamlined extension, enhancing data accuracy and campaign management for advertisers.

• The unified Tag Assistant simplifies debugging and troubleshooting, reducing downtime and improving tag accuracy critical for tracking conversions and optimizing ad spend.

• Google’s revival of Tag Assistant highlights responsiveness to user concerns, aiming to rebuild trust and support marketers and developers after a volatile period of updates.

Retail Media’s Grocery Revolution • Grocery retail media networks are evolving with data-driven insights and partnerships, offering advertisers new opportunities to reach loyal shoppers.

• Grocery RMNs provide rich first-party data on purchase behavior, enabling advertisers to target ready-to-buy consumers with precision across in-app, in-store, and online channels.

• From hyper-localized in-store targeting to nonendemic advertising and connected TV, grocery RMNs are embracing personalization and programmatic solutions to optimize campaigns and expand reach.

Comcast’s Ad Buying Solution • Universal Ads aims to simplify the traditionally complex process of buying ad space on premium video platforms, making it easier for advertisers to manage campaigns across multiple streaming services.

• As advertisers look to diversify their strategies, Universal Ads allows them to reach demographics not always accessible through social media, including those who engage with live sports, events, and premium entertainment.

• Comcast hopes to lower the barriers to entry for businesses traditionally limited to social media campaigns by offering their self-service platform and including free AI-powered tools to create professional quality ads without significant resources or budget. 

 Future of Commerce
 

Prepping for Goodbye • Despite President-elect Donald Trump’s request to pause legal proceedings, marketers and creators face uncertainty as the US edges closer to a potential TikTok ban.

• If the Supreme Court upholds the ban, TikTok will be removed from app stores on January 19th, updates and support will cease, and Oracle-hosted servers may shut down, potentially rendering the app non-functional in the US.

• Businesses are preparing for a potential TikTok ban by shifting to alternative platforms, downloading TikTok content for repurposing, and focusing on building up email and SMS databases to maintain direct communication with customers.
  

The Amazon Exodus • Amazon sellers are prioritizing alternative platforms like TikTok Shop, Walmart Marketplace, and Shopify, citing lower fees, simpler processes, and reduced dependence on Amazon’s restrictive ecosystem.

• Sellers investing in Shopify and TikTok Shop are redirecting ad budgets to social media and independent strategies, highlighting a trend toward building direct-to-consumer relationships outside Amazon.

• Frustrations over account suspensions, rising fees, and penalties for price disparities across platforms underscore sellers’ growing demand for control and flexibility in their business operations.
  

Tackling the Return Surge • Retailers embrace digital tools and strategies to manage rising post-holiday returns while balancing costs and customer satisfaction.

• The growing trend of “bracketing” (ordering multiple sizes or variations with the intent to return) significantly increases return volumes, presenting opportunities for advertisers to promote tools like virtual try-ons or AI-powered sizing to reduce this behavior.

• AI-driven recommendations, fraud detection systems, and targeted loyalty programs can improve the shopping experience while building customer loyalty, offering advertisers a way to connect meaningfully with consumers post-purchase.