Amazon backs out of Google Shopping ads
Amazon quietly exits Google Shopping ads, giving competitors a shot at cheaper clicks
Amazon has quietly pulled its massive ad spend from Google Shopping auctions, something that hasn't happened at this scale since the early days of the pandemic. The sudden shift has left a temporary power vacuum in retail search, and competitors like Walmart and Target are already stepping in to claim that space.
For marketers used to contending with Amazon’s dominance in search ad auctions, this news brings more than curiosity. It could be a pivotal moment for performance marketing teams ready to optimize spend, lower CPCs, and reach buyers more efficiently.
This article looks at Amazon’s surprising ad pullback, the early reactions from agencies, and how smart marketers can use the opportunity before Amazon re-enters the ring.
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Patrecia Meliana
What's happening with Amazon's Shopping ads
As of July 23, Amazon has disappeared from Google Shopping auctions in both the U.S. and U.K., according to Google’s Auction Insights tool. The company had been holding 60% of impression share in the U.S. and 55% in the U.K. just days earlier.
Amazon has not provided a reason for the sudden change, and Google declined to comment. But this is not the first time the company has pulled back. In mid-Q2, it temporarily reduced its presence in the same auctions before ramping up ahead of Prime Day.
Industry watchers are floating several theories. It could be a cost control decision, a strategic pause between big sales events, or part of a live incrementality test to evaluate how critical the channel really is for conversions.
The performance media reaction
Marketers are already seeing the ripple effects. John Burton from MRS Digital said the firm has seen CPC drops in multiple accounts. One FMCG client saw a 40% decrease, although most categories have only dropped 1 to 3% so far.
Retailers like Walmart, Home Depot, and Target have gained up to 20% more impression share since July 23, according to OMG Commerce’s Heidi Sturrock.
But most advertisers are watching carefully before jumping in. Sam Piliero, CEO of performance agency The Moonlighters, noted a 4% average CPC drop since Amazon’s retreat. That number is still within normal fluctuation ranges, and it’s unclear whether the dip will deepen.
Agencies say Google reps are encouraging clients to take advantage of the shift, but most are waiting for steadier data before adjusting their budgets.
What marketers should know
If you're managing Google Shopping budgets right now, here’s how to take action:
1. Audit Auction Insights before and after July 23
Look for specific categories where Amazon’s absence has changed the playing field. If impression shares are up or CPCs are down, you may have an opening worth pursuing.
2. Lean into smart bidding optimization
Automated strategies can adjust to auction dynamics faster than manual ones. Check that your ROAS targets are up to date and monitor performance daily to capture gains.
3. Run controlled tests on spend shifts
With one less heavyweight in the ring, now is the time to test higher bids or expanded product sets. Start small, measure quickly, and scale if conversion rates stay stable.
4. Plan for Q4 volatility
Amazon has a history of pausing spend between major events and returning with full force. Brands that benefit now should avoid overcommitting without a plan for seasonal change.
Amazon’s exit from Google Shopping ads is a rare and potentially valuable opening for marketers. Whether it’s a strategic pause or a stress test for performance, the move gives other advertisers room to breathe.
But the window may not last long. Keep your data fresh, adjust quickly, and stay ready for Amazon’s next move.
