A Rare Opening for Smaller Retailers: Why Now Is the Time to sell through Google Shopping—and How to Do It

The latest Tinuiti Digital Ads Benchmark Report (Q2 2025) reveals a clear trend: Google Shopping ad clicks surged by 18%, while overall spend grew by 19%. That’s more than double the growth rate seen in Q1. The driving factor? Major discount giants like Temu and Shein pulled back from Google’s ad auctions after new U.S. tariffs, while Amazon also cut its Shopping ad activity significantly.

The result is a rare scenario: when the biggest players retreat, competition eases, leaving the door wide open for smaller e-commerce brands to step in, spend less, and capture more attention.

What is Google Shopping and how does it work?

Google Shopping is an ad format that allows shoppers to see product images, prices, and seller details directly in Google search results. Unlike text ads, these placements display specific product offers upfront, sending users straight to your product page with a single click.

The system runs on an auction model: advertisers set how much they’re willing to pay per click (CPC—Cost per Click). Success isn’t just about bidding high, though. A well-optimized product feed and strong ad relevance play just as big a role in winning impressions.

Why this moment favors smaller businesses?

On the surface, CPCs look like they’re rising—and that’s true. But here’s the nuance:

• Branded keyword CPCs (e.g., bidding on “Nike shoes”) rose by 13% year-over-year, showing heavy competition around big brand names.
  
  
• Overall market CPCs across campaigns rose by just 3%—a mild increase.
  
  
• Google Shopping CPCs, however, have become more favorable. With Temu, Shein, and Amazon scaling back, competition dropped—bringing lower costs per click and fueling the +18% growth in clicks.
  
  

In short: brand-keyword ads are getting pricier, but product-based Google Shopping ads have actually become more affordable. That makes this channel uniquely attractive for smaller retailers right now.

What should smaller businesses do now?

1. Get into Google Shopping immediately. While the giants are still quiet, your budget stretches further and your visibility grows.
   
   
2. Leverage Performance Max campaigns. Q2 data shows PMax drives 59% of Shopping sales and outperforms standard campaigns on click growth.
   
   
3. Optimize your product feed. Clear images, competitive pricing, and accurate attributes (size, color, category) directly impact your ad performance.
   
   
4. Diversify across channels. Pair Google Shopping with Microsoft Search, where clicks grew 15% and CPCs rose only 1%—still cost-efficient.
   
   
5. Keep monitoring market shifts. This window may be short-lived. If Amazon and others fully return, CPCs will climb again.
   
   

Bottom line

Right now, Google Shopping is one of the few ad channels where competition has eased, giving smaller e-commerce players the chance to buy visibility at a discount. This opportunity won’t last long—so the smart move is to act now, while CPCs remain favorable and customer clicks are accelerating.

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