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On March 11th, Amazon put a halt to its spending on Google Ads to counterbalance the increased demand due to the COVID-19 outbreak. By March 12th, their paid search traffic was down 90% from the previous day, and by March 25th, this decision had already cost it 11.2M visits. Amazon seems to have completely removed itself from the competition for essential goods, effectively leaving one million daily visits on the table for other competitors to take.
Video games are another story, though, and remain a significant source of revenue for Amazon. Despite the overall decrease in PPC spending, the mega-retailer continues to bid on video game-related keywords to capitalize on the recent surge in stuck-at-home online gaming during the coronavirus pandemic. In March, Amazon-owned subsidiary, Twitch, was up in traffic by 15% YoY, worldwide.
Meanwhile, eBay is ahead of the game (pun intended). Just days after Amazon’s decision, the competitor marketplace upped its investment on high-volume keywords such as “toilet paper,” “n95 mask”, and “hand sanitizer” by 60%, which has brought in an incremental 330K visits to the site every day.
Just days after Amazon’s decision to cut Google Ad spend by 90%, eBay upped its investment on high-volume keywords such as “toilet paper,” “n95 mask”, and “hand sanitizer” by 60%, which has brought in an incremental 330K visits to the site every day.
