"Hey Google, your Shopping ads are too expensive!" Sincerely, Amazon

I am surprised to see the limited coverage of Amazon's recent shutdown of Google Shopping/PLA (picture ads) that show at the top of Google results related to products has been.

Marketing firm Merkle noticed Amazon’s sudden retreat on April 28 by analyzing Google shopping ad data it tracks for clients. “The widespread vanishing act observed over the last week point to Amazon itself pausing its Shopping campaigns,” Andy Taylor, a Merkle research director, wrote in a recent blog.

Most brands and retailers have become accustomed to Amazon typically outbidding them for position #1 in PLAs or at least being in the top 5. Alongside Amazon you will see other retailers battling it out along with the brand for placement. All of this competition leads to higher prices for better placement which ultimately helps Google. 

I'd be surprised if Amazon wasn't the largest bidder on the PLA/Shopping platform and with Amazon dropping out, I'd expect bid prices to come down. Could they have dropped out because they know most customers (60%+) will start their search at Amazon anyways? Could they have dropped out because the cost of PLA (imaged ads) has become too high yet continued to pay for AdWords (text ads)? Sign of the war intensifying? Likely a mix but this is definitely a good thing for those with PLA budgets and not a good thing for Google.

Source: http://adage.com/article/digital/amazon-st...