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Amazon Exits Google Shopping Ads Worldwide, Cuts CPC by 25-30%

Amazon's bold move slashes Google Shopping ad costs. Is this a sign of things to come in the digital advertising landscape?

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Amazon Exits Google Shopping Ads Worldwide, Cuts CPC by 25-30%

Amazon has made a significant move in the digital advertising landscape. The e-commerce giant has completely withdrawn its Google Shopping ads across global markets, a decision confirmed by multiple sources and data points.

The withdrawal, which took place between July 21 and July 23, 2025, was first documented by Mikael Brakker, L'Oréal Luxe E-Commerce Director for Europe Zone, and later verified by Mike Ryan, Head of Ecommerce Insights at Smarter Ecommerce. The move was not market-specific, with analysts observing similar patterns across European markets and Japan.

Amazon's exit from Google Shopping ads has had immediate impacts. Cost-per-click (CPC) reductions of 25-30% were reported across affected markets, according to Dolnai benchmarks cited by Manuel Arrufat, CEO of the Madrid-based advertising analytics company. Amazon's median Shopping ad impression share crashed significantly in the United States (from 60% to 0%), the United Kingdom (from 55% to 0%), and Germany (from 38% to 0%).

The withdrawal comes amidst significant developments in digital advertising. Google recently updated its auction mechanics, altering how different campaign types compete for the same search queries during peak shopping seasons. Amazon's decision to withdraw may be a strategic response to these changes, as it seeks to maintain higher profit margins and control over its customer relationships.

Amazon's confidence in alternative traffic sources, such as direct search behavior and expanding AI-powered recommendation systems, is believed to be a driving factor behind this move. The e-commerce giant has been reducing its Google Shopping spend for months, with a 50% reduction in the United States during May 2025, suggesting a strategic planning process rather than an impulsive decision.

Amazon's complete withdrawal from Google Shopping ads has created immediate cost reductions and uniform market impacts. While the e-commerce giant's median Shopping ad impression share has crashed, it signals confidence in alternative traffic sources and a strategic response to changes in digital advertising. Market observers anticipate further developments as Amazon continues to refine its advertising strategies.

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