Temu appears to be the biggest benefactor of Amazon’s recent exit from Google Shopping ads, according to new data.
In July, Amazon completely withdrew from Google Shopping ads after a year of gradual pullback. Some market observers had predicted that by the retailer stepping back, it would lower ad costs for everyone else.
Writing on LinkedIn, Mike Ryan Head of E-commerce Insights at Smarter Ecommerce, noted that contrary to expectations, cost-per-click (CPC) rates haven’t dropped significantly in Europe, citing new data on the SMEC platform.
Source: Smarter Ecommerce, August 2025
He observed this trend was likely driven by Temu and other high-spending advertisers, who continue to invest heavily into the platform.
Temu itself exited Google Shopping in the US between April and June, but did not seem to offset this in Europe. Analysts suggested any redirected spend likely went through Meta platforms.
In late May and June, Temu’s European ads were more erratic as the retailer tested its comparison shopping service (CSS) provider.
Ryan observed that during this time, Temu showed up in auctions under as many as 21 different names, including ‘Temu AT CSS,’ ‘Temu BE CSS,’ and ‘Temu CZ CSS.’
He pointed out that this timing worked perfectly as the tests ended just before Amazon left Google Shopping. This put the Chinese giant in a prime spot to ramp up its adspend in mid-July and take full advantage of the changing market.
“Temu is loving Amazon's exit from shopping ads and could very well stand to be the single-largest benefactor of this change,” Ryan wrote in a LinkedIn post. “This is also likely to account for the fact that, contrary to market expectations, and to the dismay of many, CPCs haven't really gotten much lower.
“Temu and some other supersized spenders are raining on this parade (bad for advertisers) and propping up Google's stock – good for investors,” he added.
While smaller advertisers may find the current CPCs frustrating, the move demonstrates how market dynamics can shift dramatically when industry giants change course.
‘In Shopping, the gap doesn’t stay open for long’
Steve Warrington, SVP of Client and Industry Engagement at Upp.ai, said: “Amazon leaving Google Shopping didn’t hand advertisers a discount, it handed them a test. The biggest spender disappeared overnight, and the retailers who gained were the ones able to move fastest: reallocating budget, shifting SKU focus, and expanding coverage while others were still waiting for a planning meeting.
“This was never about CPCs falling. It’s about how quickly you can turn a market change into an advantage. In shopping, the gap doesn’t stay open for long. If you can’t react in hours, someone else will.”
The news comes as Amazon launched Haul, a new mobile-first shopping feature within its shopping app.
The service offers a hand-picked range of products priced at £20 or less, with many items under £10. The launch reflects the retail giant’s effort to tap into the rising popularity of fast-fashion e-commerce platforms Shein and Temu.
The story first appeared on Campaign's sister title Performance Marketing World.
