Amazon drops Google Shopping Ads: What it means for advertisers

Amazon has dramatically scaled back its paid search activity, particularly on Google Shopping. This move, observed over the past 14 days and intensifying in recent days, has sent ripples across top-level industries. For brands where Amazon is a key competitor, understanding these dynamics is crucial for your upcoming performance commentary.

The abrupt cessation of Amazon’s product advertising on Google Shopping is its most significant withdrawal in years. Adthena’s search intelligence shows that Amazon’s Share of Clicks in the US, UK and APAC plummeted to zero across core markets, including Health & Beauty and Consumer Electronics.

Is this merely a post-Prime Day cooldown, or does it signal a broader strategic change? 

Analysts suggest this could be a strategic play in an emerging AI search “turf war,” with Amazon aiming for full-funnel control, especially with the rollout of Amazon’s shopping AI Rufus and its generative answers. This full exit from Google Shopping auctions marks the first time since the early pandemic in 2020 that Amazon has completely stepped back.

The absence of Amazon is expected to have a tangible impact on auction dynamics. Reduced auction pressure will likely lead to lower CPCs and an increase in impression share for other advertisers. This creates a significant opportunity for retail brands to capture previously contested traffic, especially heading further into Q3.

Here we see Market Movements for Amazon.co.uk vs lookfantastic.com for Skincare on Mobile, PLAs. 

Our data clearly shows that some brands are already capitalizing on Amazon’s pullback. For instance, bestbuy.com has notably gained Share of Clicks and increased their Share of Spend within the Consumer Electronic space. Armed with competitive insights, brands like bestbuy.com are likely adjusting their bids and budget allocations to fill the void left by Amazon. 

Adthena’s clients can track these movements instantly, identifying which competitors are gaining ground and what tactics they are employing to win.

This shift also has implications for third-party sellers and brands heavily reliant on Amazon’s ecosystem. While Amazon’s direct advertising efforts on Google Shopping have ceased, the broader impact on brands that sell through Amazon needs careful monitoring. Should these brands increase their own paid search efforts to compensate, and avoid a dip in revenue?

To truly understand this ripple effect and its impact on your bottom line, begin by analyzing your own internal revenue data. If you identify revenue dips that correlate with Amazon’s pullback, leverage Adthena’s market share reporting. This will help you pinpoint specific categories and keywords where competitive pressure has eased, revealing the best opportunities to strategically invest your paid search budget to compensate and drive growth.

Furthermore, utilize Adthena’s Search Term Detail and Opportunity reports to identify valuable keywords that are now underserved or where you can gain a stronger presence, ensuring your paid search efforts effectively compensate for any lost visibility and drive growth.

Benchmark your ads against new leaders 

With Amazon’s retreat, the auction top spots are now being contested by a new set of dominant players. This presents a prime opportunity to refine your own ad messaging and ensure it stands out. 

Adthena’s Top Ads allow you to monitor and benchmark your ads against the new market leaders. You can analyze their winning ad creatives, understand the saturation of specific phrases and offers, and evaluate their messaging, promotions, and CTAs. With this insight, you can craft more compelling, unique, and clickable ad copy that directly addresses the market’s current opportunities and effectively captures traffic in Amazon’s absence.

Evaluate your competitiveness against the remaining top players

With Amazon’s historically aggressive pricing now removed from the Google Shopping Ads auction, there’s an immediate opportunity to re-evaluate your pricing strategy. With Adthena’s Google Shopping Ads Insights you gain deeper insights into competitor pricing, customer sentiment and product tags – identifying where you can lead on price and maximize your competitive advantage in Amazon’s absence.

Plug the keyword gaps left by Amazon

Amazon’s withdrawal from the Shopping Ads auction will have opened up significant keyword opportunities across numerous categories. This is where Adthena’s Head to Head Comparison steps in, allowing you to compare your current keyword coverage and performance against other top competitors.

More importantly, it enables you to look back at what terms Amazon itself used to advertise so you can seize those vacated opportunities.

Now is a critical time for search strategy teams to act. Amazon’s strategic shift has created an immediate, dynamic void in the paid search landscape, presenting a rare window of opportunity for other brands to significantly alter their market position. For enterprise brands, a rapid response is crucial – every day of delay in responding to these market shifts can represent thousands in lost revenue and missed opportunities. Relying on outdated or delayed data means missing out on potential cost savings and impression gains that are happening right now.

Adthena’s Search intelligence empowers you to:

• Identify competitive gaps: Instantly see where Amazon has pulled back and where your competitors are gaining share.
• Adjust budgets and messaging: Optimize your ad spend by capitalizing on lower CPCs and increased impression opportunities.
• Refine your strategy: Understand the tactics of successful competitors.

Don’t let this significant market shift catch you off guard. With Adthena, you have the real-time data to turn Amazon’s strategic move into a decisive competitive advantage. Take a closer look.