Amazon unexpectedly pulled out of Google Shopping auctions in late July, shaking up paid search. Retailers quickly filled the gap, driving stronger click growth and easing ad costs across Google and Microsoft.
That’s according to marketing agency Tinuiti, which today released its Digital Ads Benchmark Report Q3 2025. Here are some of the key takeaways from Tinuiti’s report.
Google Search – more clicks, lower prices. Ad spend rose 10% year over year, as clicks jumped 11% – the fifth straight quarter of acceleration.
- CPCs fell 1%, reversing a 3% rise from Q2.
- Shopping ads surged: clicks up 15%, CPCs down 1%, spend up 14%.
- Temu and Shein returned to Google Shopping in mid-2025, offsetting Amazon’s exit, while Walmart captured more visibility.
Performance Max gains momentum. Google’s Performance Max (PMax) campaigns continued to advance, accounting for 68% of shopping ad spend in Q3, up from 59% in Q2.
- PMax generated 2% higher conversion rates and 5% higher sales per click than standard Shopping campaigns, though its ROAS was 2% lower due to higher CPCs.
- Non-shopping placements made up 33% of PMax spending, with YouTube video impressions doubling from 5% to 9%.
Text ads regain traction. Google text ads saw 8% year-over-year spend growth and a return to positive click volume after several slow quarters.
- Brand CPCs cooled from 19% growth in Q1 to 5% in Q3, while non-brand CPCs fell 7%.
- Advertisers are experimenting with new AI Max campaigns, though they remain a small share of activity.
Microsoft steady, but slower. Microsoft search ad spending rose 12% year over year with click growth just under 15% and CPCs down 2%.
- Amazon remained active in Microsoft Shopping ads even as it paused its Google program.
Why we care. Amazon’s withdrawal left a vacuum that improved performance for other retailers and gave Google room to stabilize pricing and auction dynamics. The shift also highlights how quickly competitive dynamics can change in digital advertising. At the same time, Google’s Performance Max growth signals that automation and AI-driven campaign management are becoming central to maintaining efficiency and reach in a more fluid, platform-driven marketplace.
Bottom line. Google’s paid search ecosystem adjusted to Amazon’s absence, delivering higher volumes at lower prices, based on Tinuiti’s Q3 data. Meanwhile, Performance Max continued to reshape the landscape as automation and AI optimization gained traction with advertisers.
Tinuiti’s report. Digital Ads Benchmark Report Q3 2025 (registration required)
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