Amazon Halts Google Shopping Ads, Cuts Budget 50%

Amazon has ceased advertising on Google Shopping, Google's e-commerce platform. This move, which was first noticed last week, indicates that Amazon has withdrawn from Google Shopping's ad auction. The change was confirmed by the disappearance of Amazon's name from the "Auction Insights" tool, which provides insights into competitors' ad performance on Google Shopping. This development comes after Amazon had already reduced its Google Shopping ad budget by 50% in the US market in May 2025, signaling a gradual withdrawal from the platform. Despite this, Amazon had been actively embracing Google's ecosystem as recently as 2024, engaging in various collaborations with the tech giant.

The decision to halt advertising on Google Shopping is likely driven by several factors. One possible reason is the increasing competition on the platform, which may have made advertising less effective or cost-efficient for Amazon. Additionally, Amazon may be looking to direct more of its advertising spend towards its own platforms, such as Amazon Advertising, to maximize control over customer data and the shopping experience. This move could also be part of a broader strategy to reduce reliance on third-party platforms and strengthen Amazon's own advertising capabilities.

The impact of this decision on both Amazon and Google remains to be seen. For Amazon, the move could potentially lead to a decrease in visibility on Google Shopping, which is a significant traffic source for many e-commerce businesses. However, Amazon may be able to offset this by increasing its advertising efforts on its own platforms and other channels. For Google, the loss of Amazon as an advertiser could result in a decrease in ad revenue, although the impact may be mitigated by the continued advertising efforts of other large retailers on the platform. Overall, this development highlights the evolving dynamics of the e-commerce advertising landscape and the strategic decisions that major players are making to stay competitive.