AMAZON'S EXIT FROM GOOGLE ADS TRIGGERED A TRAFFIC SURGE — BUT ROI DIDN'T FOLLOW

Summary from the TLDR Marketing newsletter

Amazon's sudden exit from Google Shopping ads in July caused immediate disruption across ad auctions, leading to more clicks and impressions but weaker returns for most advertisers. Overall clicks rose 7.8% and CPCs fell 8.3%, but conversion value declined 5.5% and ROAS dropped 4.4%, showing that extra traffic often failed to translate into profitable sales. Electronics was the only major category to see true gains, with conversions up 81.3% and ROAS up 7.1%, as brands like Best Buy and Apple could match Amazon's speed and pricing. Most other sectors, including Apparel & Accessories and Sporting Goods, fell into the “volume trap,” gaining traffic but losing efficiency as Amazon-seeking shoppers expected unmatched price and convenience. Advertisers must track value, not just volume, and focus on sustainable advantages rather than chasing displaced Amazon traffic.