Amazon, one of Google’s biggest retail advertisers, has returned to Google Shopping ads across its international domains after an unexpected one-month pause. However, the U.S. market remains excluded.
This return marks a notable shift in the retail advertising landscape. Industry experts suggest the pause was not accidental but rather a deliberate stress test to evaluate how reliant Amazon and its competitors are on Google Shopping traffic.
Key facts:
- All non-U.S. markets are once again seeing Amazon’s Shopping ads.
- The U.S. remains excluded, prompting speculation about Amazon’s domestic ad strategy.
- The pause lasted exactly one month, strengthening the theory of a planned experiment.
The Ripple Effect: What Happened During Amazon’s Absence
Amazon’s pause didn’t just impact its own traffic. It reshaped the entire auction ecosystem.
Competitors saw gains in visibility and clicks.
More ad space became available when Amazon left, and rivals quickly captured the share. Other retailers saw a surge in impression share and clicks.
Return on ad spend (ROAS) dropped.
According to a study by Optmyzr, while the clicks went up, retailers were paying more per conversion. As a result, ROAS, or Return on Ad Spend, declined.
Efficiency declined without Amazon.
Amazon’s scale seems to stabilise Google Shopping traffic. It makes the marketplace more predictable and cost-efficient, even for competitors.
In short: Amazon’s dominance paradoxically helps rivals by keeping CPCs in check. It commands a large share of clicks but helps keep ad traffic more predictable and cost-effective across the board.
Why Is The U.S. Still On Pause?
The U.S. exclusion stands out, and industry observers suggest several possible reasons:
Stress-testing dependency:
Amazon could be measuring how much U.S. traffic it can retain without Google’s Shopping ads. The U.S. may serve as a primary testing ground to test organic traffic, direct visits, and alternative ad channels.
Channel diversification:
Funds may be redirected into Amazon DSP, Sponsored Products, and retail media networks, where it keeps tighter control.
Mature market strategy:
The U.S. is Amazon’s most mature market. In the U.S., Amazon’s brand power and direct traffic may reduce its need for Google as an acquisition channel.
Negotiation leverage:
Pausing ads in the U.S. could give Amazon bargaining power in any future partnership or pricing discussions with Google.
The Bigger Picture: Amazon’s Advertising Muscle
Amazon is one of Google’s largest retail advertisers, and its decisions have outsized effects:
- Influence on Auctions: Amazon’s participation stabilises CPCs and ROAS across retail categories.
- Market Share Implications: Competitors temporarily gain visibility when Amazon pauses ads, but inefficiency means the benefits are mixed.
- Flexibility in Spend: Amazon’s ability to “flip the switch” at scale underscores its advantage in experimenting with acquisition costs without long-term disruption.
For rivals, Amazon’s continued absence in the U.S. creates a temporary window to capture market share.
What It Means For Retailers
Amazon’s selective restart of Google Shopping ads reinforces its position as both a dominant retailer and a market disruptor. The decision to exclude the U.S. signals more than a budget shift. It’s a calculated experiment in competitive pressure and channel efficiency.
For retailers, the lesson is clear: Amazon’s ad moves don’t just affect its own traffic. They reshape the entire auction landscape.
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At 360 OM, we specialise in helping businesses take their marketing efforts to the next level. Our team stays on top of industry trends, uses data-informed decisions to maximise your ROI, and provides full transparency through comprehensive reports.
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