Amazon reverses its Google Shopping retreat, making life harder for performance buyers

"Back in July, Amazon cut its investment in Google Shopping ads down to almost nothing in every market it operated globally. The abrupt move raised alarm bells among search practitioners, who rushed to speculate about the e-commerce giant's motivations and what its retreat might mean for their clients - namely dollar, pound and Euro savings. This week Amazon plunged back in. According to Mike Ryan, head of e-commerce insights at Smart Commerce, Amazon's share in every market fell from 70% to 0% after July 22; as of Aug. 23, it was back up at 74% in every market bar the United States, implying a return to investment."

"An Amazon spokesperson declined to comment on the matter, but its activity is visible to search practitioners through the use of Auction Insights, a tool Google provides that enables them to monitor the share of search impressions gained by top advertisers in the market, relative to their own clients. Though the 'what' of the matter is clear enough, the 'why' remains a bit of a mystery. An ultra-lean approach to ad spend during the fallow weeks between Prime Day and Black Friday, or a grand incrementality test are both viable theories. Given the retreat lasted precisely 31 days, the latter's the most popular hypothesis. Either way, there are implications for the other brands active in Google Shopping."

Amazon sharply reduced Google Shopping ad investment worldwide in July, cutting impression share from roughly 70% to near zero across markets for 31 days before resuming spend in August. The company's share had returned to about 74% in most markets by Aug. 23, except the United States. Search practitioners can track the activity using Google's Auction Insights to see advertisers' impression shares. Analysts offer two main explanations: seasonal austerity between Prime Day and Black Friday or a deliberate incrementality test. The brief withdrawal and quick return underscore Amazon's ability to influence bidding dynamics and affect competing advertisers.

Read at Digiday