When Amazon stopped advertising on Google on July 23rd, an unexpected "consumer expectation trap" emerged. Displaced Amazon shoppers clicked on competitor ads but retained Amazon-level expectations for pricing, shipping speed, and convenience, which most competitors couldn't meet. This led to increased traffic and lower cost-per-clicks (CPCs), but a 5.5% drop in conversion value because the new traffic had high expectations that competitors struggled to fulfill profitably.
Only one industry category truly benefited by matching Amazon's value proposition. A detailed analysis covering 9 industry categories will be shared on the Optmyzr blog.
The key takeaway for PPC managers is that not all traffic is equal; traffic displaced from a dominant competitor carries expectations that can impact conversion value and profitability.
