Amazon pauses global Google Shopping ads

Industry analysts from Smarter Ecommerce, Search Engine Land and PPC Land confirm the withdrawal occurred in under 48 hours. Amazon’s impression share plummeted thereafter from about 60 percent in the US, about 55 percent in the UK and about 38 percent in Germany to zero across all tracked regions. Search Engine Land’s coverage highlights the scale of the exit. 

While the strategic rationale remains speculative, analysts suggest that Amazon may be pivoting toward internal advertising capabilities, reducing its reliance on Google and optimizing for an AI-driven retail strategy. The exit has opened up auction space, potentially lowering CPCs (Cost per Click) and boosting visibility for competing brands worldwide. Here are some potential key changes for the advertising landscape:

1. Significant revenue loss for Google
   Amazon has historically been one of Google’s largest and most aggressive advertisers in Shopping ads, contributing hundreds of millions of euros in ad spend annually. Its complete exit represents a substantial loss in direct advertising revenue for Google’s parent company, Alphabet.
2. Reduced competition in ad auctions
   Amazon’s absence removes a dominant bidder from Google’s Shopping ad auctions. This could lead to lower cost-per-click (CPC) rates and reduced auction prices overall. While this may benefit other retailers with cheaper clicks and higher impression shares, the decreased bidding intensity may also reduce Google’s auction revenues in the long term.
3. Shift in market dynamics and advertiser behavior
   Other retailers may gain in visibility and in the share of their ad impressions on Google Shopping. However, early observations indicate that significant CPC reductions have yet to materialize extensively, and full auction dynamics will take time to stabilize and evolve.
4. Pressure on Google to adapt its ad offerings and fee structures
   Amazon’s move may prompt Google to revise its advertising fee structures, its campaign mechanics (e.g., in its Performance Max campaigns), and its overall approach to retain large advertisers and remain competitive against rising platforms and AI-powered shopping experiences.
5. Long-term strategic uncertainty
   The duration of Amazon’s withdrawal is unknown. If permanent, it could signal a strategic shift in which major advertisers prioritize platform independence and direct customer acquisition over multi-platform advertising. This could encourage other large advertisers to reconsider reliance on Google’s ad ecosystem, and drive broader advertiser fragmentation and revenue pressures on Google.
6. Mitigating factors via AI and other advertisers
   Google is enhancing its generative AI ad tools and expanding its advertiser base, which may partially offset revenue declines from Amazon’s exit by attracting more advertisers or increasing ad spend from others.

In summary, Amazon’s withdrawal is a major disruption that will likely lead to some decline in Google’s Shopping ad revenues and shift auction dynamics, but the long-term impact depends on Amazon’s duration of absence, Google’s strategic responses and market adaptation by other advertisers. Constant monitoring will be crucial for all advertisers. Those who have so far benefited from Amazon’s shopping presence at Google Shopping must now take action themselves.