In a move that has quickly sent ripples across the performance marketing and retail advertising space, Amazon has significantly reduced its presence in Google Shopping ads across major EU markets.
The online retail giant, which regularly commanded up to 60% of impression share in many product categories, has now stepped away from the Google Product Listing Ads auction in territories including the UK, Germany, France, and Spain.
This retreat marks a major shift in the Comparison Shopping Services (CSS) landscape, shaking up the auction dynamics and opening opportunities for affiliates and the advertisers they promote.
Amazon has made no official statement about the reasons behind this move. Industry insiders have suggested it is a tactical reassessment rather than a permanent withdrawal. The company may be rethinking its paid search strategy in response to regulatory pressures in Europe, rising CPCs, or internal profitability targets amid broader economic headwinds.
Regardless of motive, the immediate impacts are already being felt.
What do the CSS experts think?
“Amazon dropping their Google product-listing ad activity across major EU territories where they usually capture c.60% of impression share across categories is a big shift in the CSS landscape,” said Rob Longmate, Head of Partnerships & Insights at Genie Shopping.
“Here at Genie Shopping, we have already observed the reactions to this, with a variety of advertisers benefitting from impression share jumps and being in a position to move with agile decision-making.
“Now CSS through affiliate is such a bigger part of affiliate as a whole, it’s a perfect time to shine and show the versatility of the channel, whereby it can help support agile advertisers to win part of this share.”
Affiliate CSS providers like Genie and Redbrain are already adapting to the vacuum left by Amazon’s absence.
With Amazon stepping back, advertisers leveraging affiliate-based CSS models are seeing stronger visibility and click-throughs, as competition in the auction temporarily eases.
“Amazon’s sudden exit from Google Shopping has created a noticeable shift in the auction environment,” noted James Gibson, Head of Marketplaces at Redbrain. “We’ve observed a clear increase in click volumes across multiple verticals now that a major player has stepped aside. Interestingly, average CPCs have remained steady rather than dropping, suggesting that other large advertisers are quickly absorbing the available advertising space.”
This stability in cost-per-click pricing points to the high value and readiness of other retailers to step into the space Amazon once dominated. But rather than flood the market and drive down costs, these players are focused on converting the increased visibility into incremental sales and higher revenue share.
“We’re actively adjusting our strategies to capitalise on the increased visibility,” Gibson added. “We’re working closely with our partners to ensure we maintain a strong competitive position while driving incremental sales.”
An inflection point?
For affiliate marketers and CSS partners alike, this could be a defining moment. The rapid changes underscore the strategic value of agility and the power of affiliate-driven CSS models to respond to real-time shifts in the market.
Unlike traditional setups, affiliate CSS providers often operate with more flexible commercial models and leaner approval structures, allowing them to quickly optimise campaigns and redirect spend.
While many believe Amazon will return to the ads auction once it rethinks its strategy, the current situation presents a window of opportunity that smart advertisers are rushing to make the most of.
Whether it’s a temporary move driven by testing or an early step in a longer-term strategy to reduce reliance on external platforms, Amazon’s exit reinforces just how dependent many retailers had become on its constant presence in paid shopping placements.
In the meantime, the affiliate channel has an opportunity to prove itself once again as not just a supplemental sales driver, but a strategic performance lever.
The APMA is proud to have two prominent CSS partners as members. Affiliate-driven CSS providers are helping advertisers take advantage of the current market volatility, without the overhead, long lead times, or rigid structures of traditional paid search campaigns.
One note of caution, emphasised by the APMA’s recent payments’ guide, is the need for brands to enforce speedy payment terms for CSS partners, especially as we ramp up to the golden quarter.
CSS partners face significant upfront costs as they arbitrate between cost of traffic and the commissions paid on sales. It remains imperative brands negotiate favourable terms with their CSS partners if they want them to be an intrinsic part of their marketing mix.
With impression share up for grabs and CSS spend under closer scrutiny from brands, the coming months will be a crucial time to demonstrate the role affiliate can play in performance, adaptability, and channel diversification.
Access the APMA’s payment guide here, sponsored by Revving.
