Topic of the Week - Amazon Exits Google Shopping Ads
Amazon has reportedly exited the Google Shopping auction, marking a significant change in the e-commerce landscape. According to multiple sources, Amazon has been absent from the auction since Tuesday afternoon, which is a notable departure given its typical 30% presence in shopping auctions.
Historically, Amazon held a dominant 60-70% impression share across Tinuiti clients, making it a major player in Google Shopping ads. However, data from Tinuiti and Smarter Ecommerce shows that Amazon's impression share has plummeted to nearly 0% as of mid-July, confirming a complete withdrawal from the auction in the US and internationally.
The impact on advertisers is significant, particularly those running shopping campaigns at scale. While cost-per-clicks (CPCs) have not dropped yet, brands are advised to check their account data and monitor the situation closely. The sudden departure of Amazon from Google Shopping ads could lead to changes in auction dynamics, potentially benefiting competing retailers.
However, some brands and sellers may lose out as they benefit from Amazon's ad spend. The reasons behind Amazon's exit are unclear, but it could be related to the tech company's ad ambitions, AI, or channel efficacy. Whatever the cause, the news is likely to make competing retailers rejoice.
In the short term, other major retailers like Walmart, Target, Shein, and Temu may benefit from the increased auction space, but it remains to be seen if they can fill the void left by Amazon's departure. As the situation unfolds, advertisers should be prepared to adapt to changes in the market and adjust their strategies accordingly.
eCommerce Market Stats
See some statistics relating to this week’s topics in the eCommerce market below.
Amazon eCommerce stats
- Amazon's impression share on Google Shopping ads has plummeted to nearly 0% as of mid-July, confirming a complete withdrawal from the auction in the US and internationally.
- Amazon typically appears in about 30% of shopping auctions, which translates to approximately 13 million daily impressions.
- Google Shopping ad clicks surged 18% in Q2 as a result of Amazon's previous pullback from Google Shopping ads, opening up auction space and boosting advertiser performance.
- Other major retailers like Walmart, Target, Shein, and Temu held significantly smaller shares (10-30%) of Google Shopping ads, with no major changes in trend despite Amazon's pullout.
That’s all for this week…
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