In the ever-evolving world of digital advertising, Amazon’s abrupt withdrawal from Google Shopping ads has sent ripples through the industry, prompting marketers to reassess their strategies amid shifting competitive dynamics. According to a recent study by Optmyzr, a PPC management platform, the e-commerce giant’s exit in July 2025 triggered a significant uptick in ad clicks for other retailers, but this volume increase came at the expense of return on ad spend (ROAS). The research, which analyzed data from over 2,000 Google Ads accounts, revealed that while clicks surged by an average of 18% in the second quarter, conversions did not keep pace, leading to diluted profitability for many advertisers.

This development follows reports from Search Engine Land that Amazon’s disappearance from Google’s product listing ads has reshaped auction dynamics, potentially allowing competitors to capture cheaper clicks and greater visibility. However, the Optmyzr study highlights a “volume trap,” where the influx of lower-quality traffic inflated click numbers without corresponding sales growth, underscoring the challenges of scaling in a post-Amazon era.

The Hidden Costs of Increased Visibility

Delving deeper, the study points to a 30% collapse in cost-per-click (CPC) rates across major markets, as noted in analyses from PPC Land. This drop created opportunities for smaller retailers to bid more aggressively, but it also attracted less intent-driven users, resulting in lower conversion rates. Industry insiders suggest that without Amazon’s dominant presence, Google’s algorithms may be prioritizing broader reach over precision, compelling advertisers to refine their targeting to maintain ROAS levels.

Further insights from Search Engine Land indicate that this shift boosted performance for Google’s Performance Max (PMax) campaigns, with some advertisers reporting initial ROI gains. Yet, the Optmyzr data tempers this optimism, showing that while short-term metrics like click-through rates improved, long-term ROAS suffered, with an average decline of 15% in affected accounts.

Strategic Adjustments for Advertisers

Marketers are now advised to leverage tools like Google’s Target ROAS bidding strategies to navigate these changes. A guide from Search Engine Land explains how this automated approach uses conversion value data to optimize bids, potentially mitigating the dilution effects seen in the study. Experts recommend splitting campaigns by branded and non-branded traffic, drawing from benchmarks in a 2019 Search Engine Land report that highlighted the value of separate bidding in various industries.

Case studies, such as one from DataFeedWatch, demonstrate how A/B testing product titles in fashion campaigns led to a 25% ROAS uplift, offering a playbook for adaptation. As Amazon’s exit—detailed in reports from WebProNews—intensifies rivalry with players like SHEIN and Target, advertisers must diversify across platforms to avoid over-reliance on Google Shopping.

Looking Ahead: Implications for E-Commerce

The broader implications extend to Google’s ecosystem, where AI-driven features like the new tROAS Insight Box, as covered by Search Engine Land, provide enhanced visibility into performance metrics. This could empower more informed optimizations, reshaping strategies around true profitability rather than illusory gains.

Ultimately, while Amazon’s pullback has democratized access to prime ad real estate, the Optmyzr study serves as a cautionary tale: more clicks don’t always translate to better business outcomes. Industry observers, including those from Performance Marketing World, view this as a strategic test, urging marketers to rethink success metrics beyond ROAS to include lifetime value and profit margins for sustained growth in this competitive arena.