Why Did Amazon Reduce Ad Spend – and What It Means for Advertisers

If you’ve noticed your paid media performance improving lately, you’re not alone. Many advertisers are asking the same question: Why did Amazon reduce ad spend – and what’s behind the shift?

PPC Analyst, Ramneet, has seen the impact of the change first-hand and is here to talk more about how her accounts have benefitted from Amazon’s spend pullback over the past week.


Since Amazon pulled back its advertising investment across Google and other platforms, some of our clients have seen lower CPCs, stronger impression share, and better ROI.

In this post, I’ll explore why Amazon reduced its ad spend, and how smart PPC advertisers are taking advantage of the opportunity.

So, Why Did Amazon Reduce Ad Spend?

Amazon has long been one of the biggest digital advertisers in the world, spending billions annually across Google, Meta, and its own network. But since earlier in 2025, there’s been a clear decline in Amazon’s external ad activity, particularly on Google Shopping, Search, and YouTube.

Fast-forward to just a week ago, Amazon seemed to completely cut it’s Google Shopping ad spend.

Here are a few key factors that may explain why Amazon reduced its ad spend:

  • Focusing on profitability over growth
  • Shifting towards the channels they own
  • Efficiency improvements through AI implementation
  • Pressure to scale back aggressive strategies

This is – of course – just speculation, and Amazon haven’t officially revealed their reasoning for pulling back ad spend. But what we do know, is that this change is hugely benefitting other advertisers.

How This Benefits Other Advertisers

While we’re speculating that Amazon’s reasoning is largely internal, the impact for other advertisers is real. With less competition from the retail giant, many brands are enjoying:

  • Lower CPCs across Shopping and Search
  • Higher impression share
  • Improved return on ad spend (ROAS)

Real Client Results:

My client, operating in the books and literature industry, has long faced Amazon as the industry giant, as they boasted impression share of upwards of 80%. Since Amazon pulled back spend and their impression share dropped dramatically, my client has seen a more competitive, yet cost-effective, CPC.

As Amazon’s impression share drops sharply after the week of July 14th, average CPC also falls from a peak of £0.53 to £0.40.

During this same period, my clients sales increased massively, with heightened impression share and a higher CTR as a result of Amazon’s absence.

In addition to the real-time results we’re seeing, this period is also having an impact on YTD growth, with a 12% increase in YOY sales.

What Advertisers Should Do Now

If Amazon’s ad spend pullback continues, there’s a short-term window of opportunity for advertisers who want to use it to their advantage.

Here’s how to capitalise:

Double Down on Shopping & PMax

With less Amazon competition, Google Shopping and Performance Max are seeing improved efficiency. Maximise visibility now before CPCs rise again.

Own Your Branded Terms

Amazon was known to aggressively bid on brand terms. Now’s the time to reclaim that space at a lower cost.

Test Upper Funnel Campaigns

YouTube, Display, and Discovery ads may have lower CPMs as Amazon reduces spend. It’s a great time to build top-of-funnel awareness more efficiently.

Final Thoughts

So, why did Amazon reduce ad spend? Right now, all we can assume is that the changes are strategic, and advertisers shouldn’t be sitting on their hands. We don’t know how long Amazon’s hiatus is going to last, so now is the time to take action.

Brands now have a rare and valuable opportunity. The digital ad landscape is momentarily less crowded – and that means better results for advertisers who act quickly.


Want Help Seizing the Opportunity?

If you’ve seen performance gains or want to explore how to benefit from Amazon’s reduced ad presence, let’s talk. Our PPC team specialises in data-driven strategy and capitalising on market shifts.

How To Write Effective PPC Ad Copy

Ad copy is a cornerstone of success when it comes to an effective and successful PPC strategy. PPC Analyst, Ramneet Panesar, shares her tips of how to write effective PPC ad copy that drives results.

Understanding The Basics

Before we get into the nitty gritty of writing the most effective possible PPC ad copy, let’s recap what exactly PPC ad copy is, and why it’s so important.

What is PPC ad copy?

PPC (pay-per-click) ad copy is the text used in ads that appear on the SERP (search engine results page), as well as other digital ad placements. These ads appear when users search for specific keywords, and advertisers pay a fee each time someone clicks on their ad.

Why is PPC ad copy important?

PPC ad copy is the first impression of your ad, and often even your brand, to those performing searches that trigger your campaigns.

The most effective PPC ad copy will grab the attention of your audience, communicate your brand’s value or specific product/promotion, and ultimately, encourage potential customers to click through to a landing page or website.

On the other hand, poorly executed ad copy can have the opposite effect – reaching irrelevant audiences, not having a clear CTA, and causing potential customers to lose faith in your brand and in turn, reduce conversions and business benefits.

I’ve collated some of my own tried and tested advice and insights to help you to create efficient, effective and engaging ad copy to improve PPC ad performance for your brand.

Know Your Audience

Your audience are your customers – so everything you do when it comes to your PPC ads needs to resonate and relate to their interests and search behaviour.

Define Your Target Audience

Before you start with ad copy, it’s important to know who it is you’re targeting.

Look at the demographics of your target audience – how old are they? What’s their gender? What do they do for a living?

This will help you to then understand their needs and wants – what are they looking for? Why would they buy from you over anyone else?

Resonate even further with your audience by diving into what your competitors are doing. Study their terms, phrases and language and use these to your advantage to better reach your audience.

Using Audience Insights For Better Ad Copy

Once you’ve defined your target audience, the data collected can help you to understand the audience segments most likely to convert and provide insights about different audiences and the way they interact with your ads.

Depending on the audience segment and the associated demographics, you can improve your ad copy with audience insights by tailoring it to match and reflect their tone e.g. professional/informal.

For example, a B2B business with a B2B audience would likely use a more professional tone to sell their products, whilst a product aimed at a younger audience such as gen-z might opt for a more informal tone with the use of colloquialisms.

If you don’t resonate with your audience from the get-go, this will reduce your trust and likability factor and in turn, damage or restrict campaign performance.

Crafting Compelling Headlines

The first hurdle of engaging your audience with your ad copy comes with your headline. It’s the star of the show and the most prominent part of your ad, so making an immediate impact and positive first impression comes with ensuring that your headline is crafted effectively.

The Importance Of Strong Headlines In PPC Ad Copy

The headline of your ad is the first thing that users see, which means it needs to eye-catching, compelling, and relevant to appeal to your target audience. Additionally, an effective headline that promotes exactly what you want it to and is relevant to the accompanying landing page can show authority and begin to build trust with potential customers.

Ultimately, weak headlines aren’t going to resonate with your target audience, which means they likely won’t read the rest of the ad.

Writing Persuasive Ad Descriptions

Standing out from your competitors isn’t just based on who can bid to rank highest – it also comes from your ability to effectively persuade your audience to buy from you, rather than your competition.

Include A Clear CTA

The purpose of your ad is to get customers over the line to purchase your product – so tell them to do that!

There’s a limited number of characters you’re able to use in your headlines, so make including a clear CTA a top priority, and demand action from your audience.

Chances are, if the right person sees the right ad at the right time, they’ll do it!

Other Tips/Tricks/Insights

What makes you different from your competitors?

In order to stand out amongst competitors selling the same or a similar product or service, focusing on your USP can help you to turn considerations into conversions.

Whether it’s price point, product quality, or customer reviews – use this to your advantage and make sure it’s included in your ads.

Another huge selling point that is a USP for many businesses is free or fast delivery, especially during peak sales periods.

My final tip when it comes to persuasive ad descriptions is leaning on your existing customers. If you’ve worked hard to gain trust and prove authority in your sector, then it’s likely you’ll have the reviews to reflect this, and you can use these to your advantage!

Using Keywords Strategically

Strategic keyword placement is crucial when it comes to ad copy, as they are the component of your ads that put you in front of the right audiences.

Why Keywords Matter In PPC Ad Copy

Keywords are a huge component of your PPC ad success, and work by triggering your ads to appear when users perform certain search queries. Essentially, you’re trying your best to match your keywords to what your target audience are most likely to search.

If your ads are using irrelevant keywords and aren’t being triggered by user search terms, your ads won’t show.

There’s so much more to consider when it comes to keyword optimisation for your PPC ads – download our comprehensive guide to keywords here.

Ad Copy Testing and Optimisation

Continuous improvement across your campaigns is important to remain not only at the forefront of search engine updates and market changes, but also to continue to engage and excite your audience in a way that resonates with them.

A/B Testing Your Ad Copy

The best way to figure out what works best for your account is to test!

By testing different variations of your ad copy, you can identify the ads that perform best, and look at how your audience interacts with alternative:

  • Pinned headlines and descriptions
  • CTAs
  • Tone of voice

Testing can also help you to recognise the iterations of your ads with the highest CTR and CVR and see where changes can be made to improve QS. In return, this can lead to reduced CPCs and increased ROI.

Optimising Your Ad Copy For Success

Remember: once testing has helped reveal your best performing ads, you can optimise other areas of your account/s with tried and tested activity that you know drives success.

The market is constantly changing to adhere to consumer behaviour and purchasing habits, so continuing to test and make changes as a result of the outcomes will help you to keep your audience engaged, and your ads effective.

Keeping It Concise And Clear

The average human brain needs just milliseconds to process visual information and identify a word, so it’s important to curate clear ad copy that makes the most of such a short amount of time.

Why Less Is More In PPC Ad Copy

One of the biggest challenges when it comes to writing concise and effective ad copy is staying within the character limit. There’s only 30 characters in a headline, and 90 in a description, so making sure your ad copy not only fits these requirements, but does so whilst effectively communicating your message, is crucial

Users are likely to skim read content and want to know the key points to stay interested in what you’re advertising – never mind clicking on your ad and potentially making a purchase.

If your ad copy if too long or beats around the bush and avoids the key purpose of your ad, then you could risk losing a potential conversion. Clear, concise language that presents exactly what your brand message and particular ad purpose is will garner better engagement and more conversions.

Avoiding Jargon And Complex Language

It’s important to resonate with the language and tone of your target audience, however jargon or overly complex language can put the user off reading further if they don’t immediately recognise or understand your content.

By using simpler, more consistent and digestible language in your ads, your audience can quickly see your key points and rather than losing interest and moving onto a competitor ad, remain engaged with your ad and become one step closer to converting.

Common Mistakes To Avoid In PPC Ad Copy

For everything you should be doing in your account, there’s also something you shouldn’t be doing. Here are some of the most common mistakes that people make when it comes to writing ad copy:

Using Too Many Keywords

When it comes to keywords, it’s important to focus on quality over quantity. If you’re using too many keywords, that aren’t all relevant, this can lead to lower CTR and decreased CVR, consequently affecting overall performance.  

Relevance is also a huge factor when it comes to quality score, which we know impacts ad rankings, so remaining relevant should be a top priority. Additionally, the character limit in ad headlines and descriptions is restrictive, so you don’t want to use this up with ineffective keywords that will damage your messaging.

Vague Or Weak CTAs

Yes, it’s important to use a CTA to effectively inform your audience on how you want them to take action. However, vague or weak CTAs aren’t going to have the desired effect or give a sense of urgency to your audience.

Instead, a weak CTA could even cause a drop in engagement from potential customers, with in direct, broader CTAs driving a loss of interest.

Failing To Align Ad Copy With Landing Page Content

Your ad copy and landing page content should be aligned to best increase your campaign performance, as without this alignment, your online reach could be reduced due to low quality scores and in turn, rank lower on the SERP.

Failing to effectively align your ad copy with the content on its accompanying landing page could also be seen as mis-leading, both damaging your brand’s creditability and trust and ranking lower due to a poor QS from lack of relevancy.

Advanced Tips For Effective PPC Ad Copy

There are a lot of advanced tips that can help you improve your PPC ad copy even further, with some more relevant during specific seasonal periods or to drive traffic to particular pages on your website.

Use Of Dynamic Keyword Insertion (DKI)

When it comes to sales or promotional periods, you can use DKI (Dynamic Keyword Insertion) in your PPC headlines to add a countdown timer, which automatically counts down the days in your headline to reflect when your sale ends. This can create a sense of urgency and excitement amongst your audience and push them to make a purchase.

Important to note: the countdown timer might look long, but it only uses 8 characters, so make sure you are effectively utilising the rest of the space in your headlines.

Incorporating Ad Extensions

Ad extensions can be an effective addition to your ad copy to drive users to specific pages on your website, without them having to navigate throughout your website to do so. This makes the process of getting to the right page quicker, easier, and ultimately, ensure that the customer journey is as short, smooth and seamless as possible.

Final Thoughts On Perfecting Ad Copy

The most important part of writing effective ad copy is defining and understanding your target audience. Once you’ve discovered how your audience communicates, you can begin to work on crafting ad copy that best resonates and in turn, helps to drive conversions.

Let’s recap our key points:

  1. Define your target audience and use audience insights to inspire ad copy.
  2. Craft compelling and relevant headlines to grab attention.
  3. Write ad descriptions that include a clear CTA and highlight USPs.
  4. Use keywords strategically throughout your ad copy.
  5. Test different iterations of your ad copy and use the results to optimise.
  6. Keep your ad copy concise to best utilise the character limit.
  7. Avoid too many keywords, weak CTAs and landing page misalignment.
  8. Incorporate DKI or ad extensions to drive traffic during peak times.

By following the above steps as you put together your ad copy, you’ll be well on your way to reaching your target audience and driving conversions with your PPC efforts.

For more on ad copy alongside all of the other steps you need to ensure your PPC account is healthy and effective, download our whitepaper here.

What Are The Benefits Of Working From Home?

Since switching to a ‘work from anywhere’ policy a few years back, we’ve seen the benefits of working from home for both the team and the business, which include:

  • A better work/life balance;
  • Freedom to work where you feel comfortable;
  • The ability to fit work around personal responsibilities and priorities.

And the list goes on!

But don’t take our word for it – read on to find out what PPC Executive, Ramneet, loves about remote work, and the how the benefits of working from home have impacted her life.

@circusppc

Another day in the life at @circusppc… WORK FROM HOME EDITION 🏡👀 #wfh #fyp #workfromhome #ppc #ppcagency #marketing #marketingagency #remotework #hybridworking

♬ Aesthetic – Tollan Kim

Hey Ramneet! So, first and foremost – walk us through a day in your life working remotely.

My very short commute to my home office means that I can afford a bit more of lie-in, which is always nice, so once I am logged on, I spend the morning catching up with emails and messages from clients and the rest of the team. I also spend a lot of my mornings writing reports and optimising accounts for clients.

Lunchtime usually comes around super quickly, and I use it as a opportunity to stretch my legs and get some sunshine before heading back for a home-cooked lunch, which is one of my favourite things about working from home. I even have a bit of time to practise the piano, which I’m teaching myself at the moment!

Before I head back into my home office I make myself a brew and jump into some client calls and meetings with the team, get a bit more work done, and wrap up for the day. I love how even though my days can be busy, I’m able to take the time I need to breakaway from the screen and do the things that give me energy and help me to be more productive.

Sounds great! Is there anything you don’t like about the days you spend working remotely?

I spend the majority of my time working remotely as I live a little further away than a lot of my colleagues, so I do miss the office atmosphere at times. However, I love that the agency has a lot of communication channels and events in place to make sure that those not in the office still feel just as much a part of the team, such as monthly socials, weekly team meetings, and a lively office chat on Skype that makes me feel like I’m with everyone!

Why do you think it’s important for agencies to adopt a hybrid working model?

The world has changed and working culture has become more flexible than ever before, so anyone that isn’t offering some sort of flexibility is shutting themselves away from a huge talent pool of people who are looking to develop their career – but also maintain a healthy work/life balance with the flexibility they need to do so.

What are the biggest benefits of working from home for yourself?

Being able to work remotely doesn’t just give you more freedom, but it also demonstrates how much your employer trusts you to perform effectively. Before working from home was as popular as it is today, I’d read about so many people experiencing a pushback on working anywhere but the office because employers didn’t trust that they’d get the same amount of work done, or produce the same quality of work.

Now (whilst I hate to mention the p-word), following the pandemic and being forced into a situation where employers had no choice but to allow people to work from home, we know that efficiency and output doesn’t have to be a problem just because we’re working from a different location. So, the businesses that still aren’t offering flexibility really have no excuse not to!

Last but not least, what are your top tips for those just starting to work remotely?

Create a space in your home, even if it’s just a certain area of a room, that is for working and working only. It can be really hard to clock out of work mode if you don’t have that clear change in environment or space, so it’s important that you set those boundaries for yourself. Also, invest in a comfy chair and a good desk – it will make all the difference.

Meet The Team – Ramneet

What better way to start the month than to introduce our newest team member, PPC Assistant, Ramneet!

Name: Ramneet
Date Started at Circus: January 2022

What first made you want to pursue a career in PPC?
I wanted more of a challenge, and to explore other sides of marketing.

What’s your favourite thing about working at Circus?
The team spirit is really motivating and uplifting! It makes it a really nice place to come to work every day.

Who is your dream client?
Anyone in the house design exterior industry or nightlife industry. They’d be really fun for me.

If you could solve one PPC issue forever, what would it be?
I’m still quite new to PPC, so I haven’t stumbled upon any issues. I will be sure to update if that changes.

What’s your dream holiday destination?
I can’t pick just one! I want to see the world!

What would your desert island meal be?
For starter, garlic dough balls; main, any spaghetti or pasta dish with a meaty sauce; dessert, a chocolate brownie with vanilla ice cream.

Tell us something about you that might surprise people.
I dream very vividly every night without fail, so I keep a dream journal in my notes app on the phone. I’ve been writing it in daily for just over two years.

If you could guest star on a TV show, which one would it be and why?
Prison Break – it’s my favourite series. I would have definitely helped Michael Schofield and Lincoln Burrows live a life on the run.

Home or Office?
Can I say both?!

Morning or Evening?
Evening

Dog or Cat?
Dog

Countryside or City?
City

Spender or Saver?
Spender

Coffee or Tea?
Coffee

Summer or Winter?
Summer