E-commerce giant Amazon (AMZN) has reportedly stopped spending on Google Shopping ads, according to Digiday, which cited data from multiple research analytics firms. Google Shopping, which is operated by tech titan Alphabet (GOOGL), allows retailers to bid for product placements in search results. Interestingly, ad buyers who track Google’s “Auction Insights” — a tool that shows the top 10 advertisers and their share of impressions — regularly saw Amazon among the biggest bidders. However, the firm’s absence from the tool in recent days indicates that it has pulled out of the auctions.
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The reasons behind Amazon’s withdrawal remain unclear, but experts speculate that it could be a cost‑cutting measure between big sales events like Prime Day and Black Friday, a test to see how much conversions drop without the ads, or even a strategic choice to avoid funding a rival platform. Notably, Amazon also reduced its presence earlier this year before ramping up ahead of Prime Day. Whatever the reason, Amazon’s exit has already created opportunities for competitors.
Indeed, Walmart (WMT), Target (TGT), and Home Depot (HD) have reportedly boosted their impression share by up to 20% since July 23. In addition, cost‑per‑click (CPC) rates are dropping in some categories, with average declines of around 1%–4%. Unsurprisingly, agencies like Tinuiti and Journey Further expect price drops to continue if Amazon stays out, which could benefit smaller advertisers that use automated bidding strategies.
What Is the Price Target for AMZN Stock?
Turning to Wall Street, analysts have a Strong Buy consensus rating on Amazon stock based on 44 Buys and one Hold assigned in the past three months. Furthermore, the average AMZN stock price target of $259.39 per share implies 12.6% upside potential from current levels.
