We know that Amazon is considered to be a direct Google competitor – particularly in the online shopping space.

It was reported that Amazon, who’d been a top bidder, had stopped bidding on Google’s Product Listings Auction.

The most recent news is that Amazon has dropped out of Google Shopping Ads altogether, (Shopping Ads being the ads with a product image and price listed at the top of search results for specific search queries – see below).

As you can imagine, these shopping ads receive a much higher click-through rate than standard text ads and the organic listings, and drive more qualified leads. This is, of course, expected, given that the user gets to see an image of the product before clicking on the ad.

Why Should You Care?

If you’re a business with shopping ads and have previously been in competition with Amazon ads, you will now see your ads positions increase, which will result in a higher click-through rate.

Even though you’ll be spending more (as a result of the increased clicks), your sales will increase proportionally.

Some businesses have even avoided Google Shopping Ads because of Amazon’s dominance; so this is a great time for them to get in!

It’s reported that Amazon has dropped out as a result of a new, competing platform they’re developing. Watch this space.

Tags: AdWords, Amazon, google, PPC