A rare shift in digital media has opened up new space for brands to win in the performance marketing landscape.
Amazon has quietly exited Google Shopping ads across global markets, marking one of the most significant retreats by a major player in recent memory. As of July 23, Amazon’s impression share—historically ranging from 30% to 60% in key markets—has dropped to zero, according to industry analysts and media buyers using Google’s Auction Insights tool.
Why Amazon’s Exit Matters
Google Shopping ads are a lower-funnel format, designed to convert high-intent shoppers close to the point of purchase. Amazon has long been a dominant presence in these auctions, often inflating costs for everyone else in the space.
Now that they’ve pulled back entirely, performance marketers are noticing changes in the auction landscape almost immediately.
What We Know
Although Amazon has declined to comment, performance media experts are speculating on a few likely motivations:
- Cost Efficiency Between Sales Peaks: This may be a strategic pause between Prime Day and Black Friday, when conversion urgency is lower.
- Incrementality Testing: Amazon may be running a live-fire test to determine how Shopping ads affect conversion lift in the absence of spend.
- Competitive Shifts: With Google and Amazon both vying for retail media dominance, it could signal a broader reallocation of budget toward internal platforms.
Whatever the reason, it’s not the first time this year Amazon has temporarily cut its Shopping ad spend—but this is the most complete withdrawal we’ve seen since early 2020.
What This Means for Other Brands
Amazon’s absence reshapes the playing field for performance marketers.
Here’s what brands are seeing:
- Lower CPCs: Average cost-per-click is down 4–12% in many categories, with some advertisers seeing drops as high as 40%, according to performance agencies interviewed by Digiday.
- Improved Visibility: Brands previously outbid by Amazon now have a better chance of surfacing in competitive Shopping results.
- Increased Impression Share: Retailers like Walmart and Target have already gained up to 20% more impression share since July 23.
- DTC Growth Opportunity: The shift creates space for brands to push further into direct-to-consumer territory and reduce dependency on marketplace giants.
For smaller or emerging advertisers, this is a window to rethink your auction strategy and capitalize on reduced competition—especially if you’re already leveraging automated bidding.
What Brands Should Consider Next
With less pressure from one of the biggest spenders in the space, now’s the time to revisit your approach to Google Shopping and related performance channels.
Key recommendations:
- Audit Auction Insights: Compare auction share before and after July 23 to uncover new opportunities and gaps created by Amazon’s exit.
- Expand Standard Shopping: Consider testing or expanding Standard Shopping campaigns where Performance Max may not be giving full transparency or control.
- Explore Search-to-Marketplace Strategies: If Amazon remains part of your omnichannel plan, explore paid search campaigns that drive traffic directly to your listings while capitalizing on CPC shifts.
- Diversify Your Channel Mix: This shift may be a sign to re-balance your investment across Google Shopping, DTC efforts, and other retail media networks.
- Use New Google Capabilities: Take advantage of updated tools that help better manage branded vs. non-branded traffic—giving you more flexibility in where and how users interact with your brand.
How Mile Marker Can Help
At Mile Marker, we’re already helping clients navigate this unexpected opening in the Shopping auction landscape. Whether you’re looking to test a new campaign structure, reevaluate bidding strategies, or push deeper into performance-led media planning, our team is here to help you take advantage of this rare moment.
Want to talk through your strategy? Reach out to our team. Whether you’re already running Shopping campaigns or just considering the opportunity, we’re ready to help you make the most of it.
