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Amazon quietly stepped away from Google Shopping ads in July, a decision that is reshaping how digital marketers think about search and retail advertising. Though it’s not a new development, the move continues to spark debate about what it signals for the broader landscape of e-commerce and advertising strategy.

Why Amazon Walked Away

For years, Amazon was one of Google’s biggest advertisers, appearing in nearly a third of all Shopping auctions. That dominance suddenly ended when Amazon pulled its campaigns across major international markets, including India. Unlike Temu or SHEIN, which scaled back ads due to tariff and cost pressures, Amazon’s exit was a calculated strategy.

Rather than depending on Google to capture intent, Amazon wants to control the full shopping journey itself. From Alexa voice commands to Prime Video behaviour to purchase data, its Marketing Cloud now creates a closed-loop system that Google cannot fully replicate. By doing so, Amazon positions itself not just as a retailer but as a self-contained product search engine.

Did Advertisers Benefit?

Many marketers initially cheered Amazon’s departure, hoping for cheaper clicks and more visibility. Some saw early wins. One analysis found a 4.31 per cent dip in CPCs, a 39 per cent lift in conversion rates, and a 35 per cent boost in ROAS. Advertisers that had long struggled with Amazon’s dominance reported big jumps in impression share and returns, one even cited a 47 per cent ROAS increase.

But the effects weren’t universally dramatic. As cited by Incubeta, Mike Ryan, Head of Ecommerce at Smarter Ecommerce, explained, “Cost-per-clicks (CPCs) dipped initially but quickly rose back to previous levels toward the end of July. Click-through rates (CTRs) saw a temporary increase before swiftly returning to business as usual. Impression shares remained fairly flat.” In other words, many competitors quickly filled the gap.

What This Tells Us About The Future

Amazon has not clarified whether the move is permanent. It may be experimenting with budget reallocation or doubling down on strengthening its own ecosystem. For Google, the challenge is clear: continue to be the starting point for shopping searches even as Amazon captures a larger share of intent-driven queries.

For brands, the takeaway is simple: platform shifts are inevitable, but those who adapt quickly to changing dynamics, rather than relying on a single channel, will find the most room to grow.