The Amazon departure of Google Shopping agitates the Internet ads market

Amazon He has suddenly abandoned Google Shopping. The decision to stop concurring to the auctions of ads that depend so many retail brands has caught by surprise in the nearly 20 markets in which they were active so far. But also for the matrix company of the search engine, Alphabetwhich received copious income from the company founded by Jeff Bezos.

During the last months, Amazon has gradually decreased its investment in Google, so far reaching the point of ceasing its appearance on the platform last Wednesday, July 23. At least, for the moment.

A change of course at Amazon

For a few days, When searching in Google Any product no longer appears the typical advertisement carousel that suggested many of Amazon. In fact, its printing quota was between 38% and 60%. Suddenly, the figure falls into a 0%chopped, because in its place only items from other stores appear, either from the general section or from the ‘shopping’ label.

The company directed by Andy Jassy leads electronic commerce in Spain. According to the CNMC Household Panel of the II quarter of 2024, 68.4% of online buyers acquired a product on Amazon in the six months preceding the survey. On the other hand, only 1% made purchases through the Google Shopping platform, a fact that could suggest that Amazon does not need so many intermediaries.

Even so, Amazon has retired from Google Shopping, but has not put full end of its advertising on the platform, since it continues to appear among the responses to certain searches under the formula of sponsored content.

What happened to Amazon on Google Shopping?

He e-commerce giant For now he has not revealed his reason to have left Google Shopping. Among the most commented hypotheses are the commitment to other online spaces, the redistribution of its budgeta total change in your strategy Advertising to gain independence, a technical transformation of your ads or a way of pressing Google to improve the conditions of your agreement. Nor is it known whether it is just a temporary pause or a definitive cessation.

Mike RyanExpert in Electronic Commerce at the company Smarter Ecommerce (SMEC), has described the withdrawal as “colossal” in a publication in its LinkedIn. Thus he has reflected on the possible reasons: «Is Amazon tired of financing its competitor Google? Is there any friction point related to Amazon’s own advertising ambitions? Something related to AI? The efficacy of the Amazon channel? I don’t think it’s its effectiveness »

In addition, he has considered that Amazon uses Google Shopping’s ads as a “Trojan horse”that is, as a way to redirect traffic for your own portal.

«Whatever the cause, the news of Amazon’s departure will undoubtedly rejoice the competition retailers. However, it could be less exciting for brands and sellersthat often benefit from Amazon advertising in his name, ”Ryan concluded.

An opportunity for retail brands?

If Amazon disappears from the showcase, it is free hollow. This means that smaller brands could take advantage of the disappearance of this great competitor in Google to occupy these spaces and gain visibility among users, which in turn could translate into more sales.