Amazon disappears from Google Shopping ads

Amazon has reportedly exited the Google shopping auction after gradually scaling back over the past year, according to multiple online sources. 

Josh Duggan, co-founder of e-commerce and paid media consultancy Vervaunt, noted on LinkedIn that of the approximate 13 million daily impressions the company tracks, Amazon has been absent from the auction since Tuesday afternoon. 

He said Amazon typically appears in about 30% of shopping auctions, so the sudden disappearance is notable. 

Similarly, Andy TaylorVP, Research at performance marketing firm TinuitiVP, shared a chart on LinkedIn, which showed the daily impression share of major retailers on Google Shopping ads in the US over time, based on anonymised client data.

Amazon’s impression share on Google Shopping ads has plummeted to nearly 0% as of mid-July, which confirms a complete withdrawal from the auction in the US. 

The e-commerce giant historically held a dominant 60–70% impression share across Tinuiti clients, meaning Amazon ads showed up in the majority of Google Shopping auctions.

Meanwhile, data from Mike Ryan, head of e-commerce Insights at Smarter E-commerce, showed that Amazon has pulled out of Google Shopping ads not just in the US, but internationally. 

The chart showed Amazon’s median shopping impression share rapidly dropping to zero across three markets —the US, UK, and Germany—between July 17 and 23. By the last date, all three had exited entirely the Google Shopping auction, with 0% impression share.

How does this affect advertisers? 

In April of this year, Amazon reportedly once again sharply reduced its ad presence on Google Shopping, marking its most significant retreat since a similar pause early in the pandemic in 2020. This was based on data from the Google Auction Insights report that it provides to all of its search advertisers.

Google Shopping ad clicks later surged 18% in Q2, which opened up auction space, boosting advertiser performance and fueling growth in Performance Max campaigns.

According to Tinuiti’s recent data, other major retailers, such as Walmart, Target, Shein, and Temu, held significantly smaller shares (10–30%), with no major changes in trend despite Amazon's pullout.

Temu and Shein exhibited sporadic activity and re-entry, but have yet to clearly capture Amazon’s lost share.

Duggan said that Amazon's decision to pull out of Google Shopping ads can be a significant change for advertisers running shopping campaigns at scale. While cost-per-clicks (CPCs) haven’t dropped yet, Duggan recommended brands check their own account data and monitor the situation closely.

Ryan said that while Amazon’s pullback from Google Shopping has been slow, “there's a difference between a gradual retreat and a total stop”. Amazon is a huge revenue source for Google, and its ad presence drives up auction prices for others.

He added that while competing retailers might benefit from Amazon’s pullback, some brands and sellers might lose out as they benefit from the tech company’s adspend. 

He said, “The question right now is why? Because knowing why is the only way we can assess the next question: for how long?

“Is Amazon tired of funding competitor Google? Is there a particular sticking point related to Amazon's own ad ambitions? Something about AI? The channel efficacy for Amazon?

“I don't think it's effective. I've long argued that Amazon uses Google Shopping ads as a Trojan horse: Google can't help but swallow the ad revenue, as it's too alluring – and yet there is the constant risk that Amazon is stealing future product searches and bringing them onto its own platform… Whatever the cause, the news of Amazon's exit is sure to make competing retailers rejoice.”