Why Amazon's exit from Google Ads is more than just a business breakup 

In a move that’s sent ripples across the global advertising landscape, Amazon has pulled the plug on its participation in Google’s Shopping Ads ecosystem, including in India.

On the surface, this might appear as just another reshuffling of media budgets. But industry insiders and ad-tech veterans see it for what it is: a strategic reorientation of how the biggest brands in the world are redefining control, data, and discoverability in a post-cookie, AI-powered advertising world.

Quiet exit; loud message

“It's not even that they want to do it — it's just that they can do it,” says Kunal Nagpal, Chief Business Officer at InMobi. “At this point, their ads business is so big that they don’t need capital from outside in any shape or form.”

Amazon’s ads business continues to impress. In Q2 2025, the company posted $14.8 billion in ad revenues, up 21 per cent year-on-year, making it not just a retail behemoth, but a bonafide ad-tech powerhouse, rivaling Meta and Google. According to eMarketer, Amazon now commands nearly 14 per cent of the global digital ad market, with its footprint rapidly expanding into search advertising, a category once monopolized by Google.

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And the most valuable aspect of this expansion? Data.

“They have the best kind of data, commerce data layered on top of contextual data,” adds Nagpal. “They can now do these things without worrying about a small blip in the loss of marketing efficiency, because they know they have half the world’s data.”

An ad sales head at a major multinational, who did not wish to be named, was more direct. “Google has its own monopoly. Anything which is part of Google (Gmail, YouTube, Meet, Maps, Translate, Workspace, Gemini, etc), Google has that data. Amazon wants to build their own similar ecosystem.”

They pointed out that Amazon’s shift aligns with the broader industry trend of first-party data protection and platform independence. “That’s why they built their own DSP, SSP, and even customer-facing AI like Rufus. This is about owning the customer journey end to end.”

This is not a one-off experiment, they add. “In 2018, they briefly pulled out and came back. But this time, the infrastructure is in place for them to go it alone.”

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Power, er, auction dynamics

While the clash of titans plays out globally, the immediate impact is being felt in the trenches of Google Ads auctions.

“Yes, there is positive impact on the auction dynamics as well as CPC landscape,” says Vibhor Mehrotra, Managing Partner at Innocean. “It is expected to impact CPCs by 7 to 15 per cent in key categories, with impression share up for grabs for big spenders.”

For Indian advertisers, especially in high-volume verticals like electronics and fashion, this opens a window of opportunity.

“Amazon was one of the top bidders on Google Shopping,” says Shradha Agarwal, Co-founder and Global CEO of Grapes Worldwide. “With their exit, CPCs are likely to drop, which benefits mid and smaller brands. They can now afford visibility and better ROAS.”

Agarwal sees this as a redistribution of visibility. “It’s a chance for D2C brands and Indian retailers to occupy more ad space. But only if they move fast, optimize their product feeds, and lean into automation.”

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More than one expert pointed out that this is not just about cost. It’s about control.

Amit Verma, Co-founder and CEO, DigitUp points out wryly that in the age of AI, drama and one-upmanship is part of doing business. “Every month there’s a launch or update by a big player or the arrival of a new upstart. And each wants to demonstrate their own capabilities. “Amazon must also be getting tired of the shifting policies around AI overviews and the current uncertainties around impressions, conversions and measurements, so they’re looking in-house for solutions, including which marketplaces they want to be.’

This is part of a bigger trend.

“Brands and marketplaces are increasingly investing in their own platforms and first-party data ecosystems, whether that’s a D2C channel, a retail media network, or in Amazon’s case, both,” says Mehrotra. “This means the future of performance marketing will be more fragmented, diversified, and focused on building proprietary, data-rich ecosystems where consumer attention can be captured and owned.”

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Agarwal echoes this shift. “Brands are already moving beyond Google (search). They’re exploring Instagram, YouTube Shorts, Pinterest, even live and influencer commerce,” she says. “Discoverability is becoming more experiential and platform-native. Not just search-based.”

Mehrotra also sounds a note of caution. “Amazon’s Great Indian Festival is one of the biggest events in India’s retail calendar. If this ad blackout from Google extends into the festive window, it’ll be interesting to see what levers Amazon pulls internally to keep their performance metrics up.”

If history is any indication, Amazon may have already anticipated this. Its in-house ad stack, robust affiliate and influencer networks, and owned properties like Fire TV and Prime Video could be enough to fill the gap.

Redefining the playbook

To be fair, Google is hardly in trouble. In Q2 2025, Alphabet reported $89.7 billion in total revenue, with $65.4 billion coming from advertising, including Search, YouTube, and Google Network. Shopping Ads continue to be a crucial piece of Google’s Search business.

But the exits are piling up. Between Apple ramping up its own ad stack, Amazon pulling out, and Meta doubling down on AI-driven ad placements, Google’s once unchallenged grip on the digital ad market is loosening, albeit slowly.

And let’s not forget. Amazon has quietly become a search engine of its own. To use a now familiar refrain to exchange4media and this reporter, “Search has actually stopped happening on Google. People now search directly on Amazon for products. That’s where purchase intent lives.”

This moment marks the start of a new advertising age. Performance marketing is no longer tied to a duopoly. Brands are building in-house capabilities, experimenting with AI-powered search, and focusing on closed-loop attribution across CTV, retail media, and direct-to-consumer platforms.

The playbook is changing. And the experts put it, it’s not about doing it because they want to, but “It’s just that they can. So they are.”

Google and Amazon declined to comment on this article when contacted by exchange4media.