Amazon Abruptly Pulls Out of Google Shopping Ads

What happened, and what does this mean for advertisers?

In a move that surprised even seasoned media buyers, Amazon has halted all activity on Google Shopping ads across key markets including the US, UK, and Germany between 21 and 23 July 2025. Smarter E-commerce data showed Amazon’s median Shopping-ad impression share fell from 60% to zero in the US, 55% to zero in the UK, and 38% to zero in Germany—within just 48 hours.

Industry voices like Mikael Brakker of L’Oréal and Mike Ryan from Smarter Ecommerce have validated the withdrawal using multiple independent datasets. This isn’t a blip – it’s a meaningful shift with real implications.

Why It Matters for PPC Buyers:

• Auction Dynamics Will Shift Dramatically:
  Amazon’s absence means the single largest source of competition in Shopping auctions has vanished overnight. With one less heavyweight in the ring, many advertisers will see reduced cost-per-clicks (CPCs), improved click-through-rates (CTRs), and a higher share of voice. While some of this vacuum will inevitably be filled by other large retailers, brands with agile budgets and bidding strategies have a golden window to capture lost Amazon visibility.
• Act Fast While CPCs Are Suppressed:
  For e-commerce brands, now is the moment to test broader keyword sets and more aggressive bid strategies, especially for best-sellers and high-margin SKUs. With auction pressure temporarily eased, even smaller retailers can earn prime Shopping real estate they previously couldn’t afford.
• Signals a Bigger Strategic Pivot by Amazon:
  Amazon had already scaled back US Shopping spend by ~50% in May 2025. The July blackout suggests this was a phased withdrawal, not a short-term pause. We could be witnessing Amazon pivoting toward its own ecosystem – Amazon Ads, Prime placements, and in-app media. PPC teams must consider how this affects competitive benchmarking, especially for consumer electronics, home goods, and FMCG sectors.

Limited to Product Listings:
It’s important to note: this withdrawal only applies to Product Listing Ads (PLAs) on Google Shopping. Google Search text ads are still live. Advertisers in non-retail categories or relying on text-based formats should continue monitoring but are unlikely to see the same impact.

Strategic Recommendations:

1. Audit Your Competitive Auction Insights Weekly:
   Use tools like the Auction Insights report to track shifts in impression share and new entrants.
2. Expand SKUs and Product Feeds:
   Add more categories to your Merchant Center feed to capitalise on less saturated product verticals.
3. Communicate to Stakeholders:
   Highlight this unique window in reports to secure increased budgets or push forward previously shelved test initiatives.
4. Prepare for the Return… Amazon may return as abruptly as it left. Keep an eye on impression share and build scenarios to react quickly when (or if) they re-enter the auction.

Need help adapting your media strategy to the change?
Reach out to Alphageek Digital for a free session running through your account and how we can help. We’ll help you turn disruption into opportunity.