Amazon Advertising Benchmarks 2025: Category Data for SP, SB, SD, and SBv

In the competitive world of Amazon, the success of your advertising campaigns can determine whether your products thrive or get lost among millions of others. With countless sellers vying for customer attention, standing out becomes increasingly challenging.

So, how can you tell if your Amazon ads are performing well? The answer lies in Amazon Advertising Benchmarks. These benchmarks provide invaluable insights into how your campaigns measure up against industry standards, helping you identify areas for improvement and set realistic targets.

In this guide, we’ll cover the following key topics:

• Key Metrics for Effective Amazon Ads Benchmarking

• Amazon Advertising Benchmarks By Category

• Additional Amazon Operational Metrics for Performance Analysis

• Strategies to Improve Underperforming Metrics

• Real-world Case Study

  
  

Key Metrics for Effective Amazon Ads Benchmarking

Cost Per Click (CPC) 

Definition 

Cost Per Click (CPC) is the amount an advertiser pays each time a user clicks on their ad. This metric helps measure the efficiency of your ad spend in generating clicks. 

Formula for Calculating CPC

Average CPC on Amazon

Among the three sponsored ad types, sponsored products have the highest median CPC at 0.98. It fluctuates depending on demand and competition. 

Relation between competition and CPC

CPC is directly influenced by competition. When more advertisers bid on the same keywords or ad placements, the increased competition drives up CPC. Advertisers often raise bids to secure premium spots, especially in high-demand categories or during peak periods, leading to higher costs. As a result, CPCs are generally higher in competitive markets. Effective bid management and strategic targeting are essential to optimize ad spend and maximize ROI. 

Click-through Rate (CTR) 

Definition 

Click-Through Rate measures the number of clicks on your ad. It indicates the percentage of users clicking on your ad and helps you understand its effectiveness in attracting clicks.

Formula for Calculating CTR

Average CTR on Amazon

There is not a universally defined good CTR number. It can vary across different industries and product categories. The average CTR on Amazon is usually about 0.4%. 0.5-1% is a strong place to be in. However, anything under 0.3% indicates your ads aren’t performing well. 

Reasons for low CTR 

• Ineffective targeting, broad or irrelevant keywords can result in ads showing up to the wrong audience.

• Ad placements in low visibility areas, like the bottom of the search results. 

• Product listings with low-quality images, vague descriptions, and negative reviews.

  
  

Advertising Cost of Sales (ACoS) 

Definition 

Advertising Cost of Sales or ACoS in Amazon advertising compares ad spend and ad revenue to help determine the ad’s profitability. This metric measures the efficiency of your ad campaign by calculating the percentage of ad spend in relation to the generated ad revenue. 

Formula for Calculating ACoS

Average ACoS on Amazon 

The average ACoS on Amazon is around 29%. However, this can vary based on advertising strategy, product niche, and business goals.

Reasons for High ACoS

• Ads, if shown to irrelevant users, lead to increased clicks and a higher ACoS.

• High competition for keywords can result in higher bid costs, raising the ACoS.

• Bidding on underperforming keywords without conversions can increase ad spend and ACoS.

• Poor product listings, such as low-quality images, vague descriptions, or negative reviews, can reduce conversions and raise ACoS.

• Overbidding on keywords without justifying the cost with adequate conversions can lead to a higher ACoS.

• Not optimizing campaigns regularly, such as adjusting bids or pausing underperforming ads, can result in inefficient spending and a higher ACoS.

• A low conversion rate, where clicks do not lead to purchases, can cause an increase in ACoS.

• Seasonal fluctuations, such as peak shopping periods, can drive up CPCs, and if conversions don’t increase, ACoS will rise.

• Failing to use negative keywords can result in irrelevant traffic, increasing clicks and the ACoS.

• High product prices compared to competitors can deter customers, leading to fewer conversions and a higher ACoS.

Related metric TACoS 

Total Advertising Cost of Sales OR TACoS measures the total ad spend relative to the total sales, including organic and ad-driven sales. A 10% to 15% TACoS on Amazon is generally considered good but a good TACoS can vary widely depending on advertising goals, profit margins, industry benchmarks, business objectives, seasonality, and more. 

The formula for TACoS calculation is:

Conversion Rate 

Definition

Conversion rate measures the percentage of visitors who make a purchase after interacting with your ads. It indicates the effectiveness of your ad in driving sales.

Formula for Calculating Conversion Rate

Average Conversion Rate on Amazon

The average conversion rate on Amazon is around 9.58%. Like all metrics, this can differ based on niche.

Typical Issues that Cause Low Conversion 

• Unoptimized product listings with vague descriptions, unclear images, and titles.

• Negative product or brand reviews impact customer trust, resulting in lower conversion rates.

• Overpriced products compared to competitors might make visitors switch to competitor brands.

  
  

Average Order Value 

Definition 

The Average Order Value, or AOV, tracks how much customers spend per transaction. It helps sellers understand buyer purchasing patterns and helps them optimize their marketing strategies accordingly. 

Formula for Calculating AOV

Average AOV on Amazon

On Prime Day 2023, the average order value was $58.67, which is lower than the usual eCommerce average of around $125.66. However, it is more aligned with Amazon's typical AOV, which is usually between $50-$55 based on recent data.

Impressions 

Definition

Impressions refer to the total number of times an ad is displayed to customers. This metric directly influences product visibility and brand exposure, helping sellers identify opportunities to drive traffic and increase sales.

Amazon provides detailed data on the total number of impressions per campaign and target, allowing advertisers to track their ad's reach and performance.

Average Impressions on Amazon

The average number of daily impressions on Amazon is approximately 57,653. However, this can vary based on factors such as targeting, keyword usage, ad quality, and placement.

Amazon Advertising Benchmarks By Category

Highest CPC: The highest CPC is paid by smoking patches, with an average of approximately $129. Other high-CPC sub-categories include printer ribbons, skincare, hair care, and supplements.

Highest CTR: Sponsored Brand Video (SBv) ads tend to have the highest CTR, around 1%, compared to 0.3-0.4% for other ad types. This is primarily because SBv ads are currently only available on search pages, where CTR is higher. Other ad types have moved to product pages, where CTR typically decreases.

Highest Conversion Rates: Grocery products typically see the highest conversion rates, often above 50%, due to low prices and frequent, repetitive purchases. Other high-converting items include:

• Seasonal products, like Halloween costumes (up to 40% conversion rate).

• Home items, such as tissues and floor cleaners (around 36% conversion rate).

• Reusables, like razor blades (approximately 32% conversion rate).

Low Conversion Rates: Products like earrings, lipsticks, and other fashion accessories often have less than 10% conversion rates due to their high impulse-buy nature and frequent changes in consumer interest.

Heavy and Bulky Items: These items tend to have moderate CPCs (below $10, which is reasonable given their high AOV), but low conversion rates (typically <3%) due to higher price points and longer decision-making processes.

For a more detailed breakdown of Amazon Advertising Benchmarks across various product categories and ad types, we’ve compiled the data into an Excel sheet. This sheet includes category-wise benchmarks for Sponsored Products (SP), Sponsored Brands (SB), Sponsored Display (SD), and Sponsored Brand Video (SBv). It provides in-depth insights into key metrics such as CPC, CTR, CVR, and ACoS.

You can check the Excel sheet here to explore the benchmark data for your specific ad campaigns and gain valuable insights into how your performance stacks up against industry standards.

Additional Amazon Operational Metrics

Besides the above metrics, here are a few Amazon operational metrics that will help you in ad benchmarking. 

What is Amazon’s average daily clicks?

Daily clicks refer to the total number of clicks on your ad each day. Amazon’s average daily clicks are between 270,872. They vary widely over the months. 

What is the average Amazon seller’s daily sales (revenue)?

Amazon daily sales is the revenue generated by sellers per day. This is the gross income received after deductions, returns, discounts, and refunds. The average daily sales on Amazon is around $910,02. 

What is the average Amazon daily ad spend?

Amazon sellers spend around $260 on ads daily. However, new sellers can initially set a daily budget of $30 to $50 to test their ad strategies. 

What is the average Amazon discount?

During Prime Days 2023-2024, the average discount rates varied by category. Electronics saw the highest average discount at 34%, followed by beauty and personal care products and tools and home improvement items, which had an average discount of 29%. These discounts were significantly higher than those typically offered throughout the year.

Strategies to Enhance Metrics Below Benchmarks

Amazon sellers have multiple opportunities to exceed industry benchmarks and accelerate growth. By implementing targeted strategies, you can optimize your campaigns and significantly improve underperforming metrics. Here are some effective approaches to help you get there:

Optimize ad copy and visuals

Approximately 67% of Amazon’s U.S. ad revenues come from search ads, meaning that a significant portion of shoppers discover products through ads. To maximize your ad’s effectiveness, consider the following optimization strategies:

• Craft engaging, concise, and persuasive ad copy with clear messaging and strong calls-to-action (CTAs).

• Incorporate relevant keywords, emphasize product benefits, and display average star ratings to boost your CTR.

• Use high-quality, mobile-friendly images with consistent color schemes, styling, and branding to enhance product recognition and appeal.

  
  

Refine target keywords and optimize listings 

• Conduct thorough keyword research using tools like Amazon Keyword Planner. Focus on high-intent and long-tail keywords that target buyers who are closer to making a purchase. Strategically use these keywords to maximize your product's visibility.

• Optimize product titles, descriptions, and bullet points by incorporating relevant keywords while ensuring clarity and appeal to potential buyers.

• Use Amazon backend keywords to improve discoverability and ensure your product ranks well in search results.

• Leverage Amazon’s A+ Content to enhance your product listings with rich media such as videos and images which can increase engagement and conversions.

  
  

Test ad placements 

Similar to Google PPC advertising, Amazon provides various ad placement options for Sponsored Products and Sponsored Brands ads. To optimize your ad performance, experiment with placements such as Top of Search, Rest of Search, and Product Detail Pages.

• Create multiple campaigns targeting different placements to identify which one yields the best results.

• Track key performance metrics such as impressions, clicks, and conversions to determine which placements are most effective.

• Use A/B testing to compare different ad creatives, placements, and keywords to identify the combination that drives the best performance.

  
  

Adjust bid amounts

Monitor ad performance regularly and adjust bids to enhance ad visibility without overspending. 

• Manually increase bids for high-performing keywords and reduce bids for underperforming ones. 

• Utilize Amazon’s Adjust Bids by Placement feature to target premium spots like Top of Search or Product Pages.

• Leverage tools like atom11 that offer several features for adjusting bids. You can use placement-specific adjustment, bulk adjustment to adjust bids across multiple campaigns, and dayparting to optimize ad spend based on the time of the day. 

Want to learn more about Amazon bidding? Here’s a detailed guide to Amazon Bidding Strategies.

Improve campaign structure

To improve your campaign structure, segment campaigns by audience demographics, keyword groups, or product type. This will help you allocate your budget effectively and reduce wasted ad spend. 

• Organize campaigns by creating a logical hierarchy, making them easier to track and optimize.

• Use consistent Amazon campaign naming conventions to navigate campaigns as they grow in number. 

  
  

Perform competitive analysis 

To perform Amazon competitor analysis, start by understanding your competitors' positioning, pricing strategies, and sales performance. This will help you refine your approach to attract more customers.

• Identify direct and indirect competitors and visit their Amazon store pages to assess their overall presentation and branding.

• List the keywords your competitors rank for, track their rankings, and identify potential opportunities to target similar or underserved keywords.

• Analyze competitor marketing strategies, ad placements, and campaigns to identify gaps and adjust your strategies accordingly.

  
  

Implement cross-selling and upselling tactics 

Cross-selling and upselling are effective strategies for increasing your AOV. Here are some ways to implement these tactics:

• Cross-sell complementary products by offering bundled deals or tiered discounts. For example, if a shopper is looking at a smartphone, suggest a phone case, screen protector, or wireless charger with a discount for purchasing together.

• Upsell by highlighting premium versions of the products shoppers are interested in. For instance, if a customer is browsing a standard laptop, suggest a premium model with enhanced features like better processing power or more storage, emphasizing the added value of the higher-end version.

  
  

Use the right technology 

Implementing the right tools can help you manage your campaigns effectively. You can automate optimization, streamline workflows, access detailed reports, and make data-driven decisions. 

A retail-aware Amazon PPC software like atom11 can help you optimize spend, improve ad performance, and drive sales with advanced analytics, custom rule-based automations, and Power BI integrations. Read how atom11 helped Freudenberg Gala improve ACoS by 40%.

Conclusion

What works for an enterprise might not work for a new Amazon seller. Therefore, Amazon advertising benchmarks work as guiding lights to help you drive results. Consider them as reference points to establish personalized benchmarks based on your industry average, business size and model, product category, and growth objectives. 

So, set your benchmarks, implement optimizing strategies, and use automation softwares like atom11 to improve your metrics and ultimately outperform the set benchmarks. 

Want to learn more? Book a demo with atom11 today!

FAQs

What is a good RoAS on Amazon advertising?

A good RoAS is typically between 3% and 5%, which means for every dollar spent on ads, you generate $3 to $5 in revenue. However, this can vary based on product category, industry, and profit margins. 

What is the average CPM for Amazon ads?

The average CPM or Cost Per Mille for Amazon ads generally ranges between $5 and $10, though it can vary based on targeting, category competitiveness, and ad placement.

What is a good CVR for Amazon?

A good conversion rate on Amazon is between 10% to 15%. Though the rate varies by product type and industry, a conversion rate below 8% can be considered low. 

What is CPM cost per 1000 views?

CPM (Cost Per Mille) is the amount advertisers pay for 1,000 impressions or views of their ads. It is calculated by dividing the total cost of the campaign by the number of impressions, and then multiplying by 1,000 to get the cost per 1,000 views.

Formula:
CPM = (Total Ad Spend / Total Impressions) x 1,000

Is 100% ACoS acceptable?

A 100% ACoS indicates a break-even point, meaning that all the revenue generated from ads is being spent on advertising costs. While this can be acceptable for strategies focused on new product launches or gaining market share, it is not sustainable in the long run. To maintain profitability, it's important to aim for a lower ACoS as your product gains traction and your brand becomes more established.