Amid Intense Rivalry, Amazon Stops Buying Shopping Ads On Google

Perhaps in a sign of its own growing ambitions in digital ad business, Amazon.com Inc is no longer bidding or buying for ads to be placed right after Google search results. The product listing ads (PLAs) as they are known, are image rich ads shown when users search for particular products on the search engine. The PLAs are highly sought after as they help companies put their products along with price information right before a user who is searching specifically for a product.

Amazon.com Inc has refused to explain why the company is no longer bidding for these ads. A Google spokesperson is reported to have said that they would not comment on the choices of individual clients and would leave it to the clients to choose their appropriate advertising strategies. Amazon.com had been bidding for the PLA ads since 2016 and is said to have spent nearly $50 million a year on it or likely higher. Zappos and other well known subsidiaries of the e-commerce giant are continuing their spends on Google ads as it was before - these companies are run independently of Amazon.com's daily operations.

Many analysts are interpreting this move as probably part of Amazon.com's moves to scale up their own advertising technology platform and business. It is either Amazon's plans for its own advertising platform or a growing confidence in its own online catalogue that draws millions of searches every day, analysts said.

Also Read: Amazon grows its programmatic ad business