The Badger loves numbers. He especially loves monitoring data trends data so that he can make informed decisions about Amazon PPC campaign optimization.
If you want to be like the Badger and rip your competition to shreds, it’s important to know the average of Amazon advertising stats for everything from CTR to CPCs, Conversion Rates, ACOS, and more.
Knowing how your campaign stacks up against the average Amazon Seller can guide PPC campaign performance to the next level and provide a unique advantage over competitors.
We’re going to take a deep dive into the data we’ve collected from Ad Badger users in 2021.
Here’s what you can expect to learn:
- Who is the Average Amazon Seller?
- Amazon Average Click Through Rate (CTR)
- Amazon Average Cost Per Click (CPC)
- Amazon Average Conversion Rate (CVR)
- Amazon Average Advertising Cost of Sales (ACOS)
- Amazon Average Daily Impressions
- Amazon Average Daily Clicks
- Amazon Average Daily Conversions
- Amazon Average Daily Ad Spend
- Amazon Average Daily Revenue
Who is the Average Amazon Seller?
While there are over 9.7 million Amazon Sellers worldwide, in the USA, only 2000,000 sellers are doing more than $100,000 in sales.
When you look at data for things like “cost per day” and “sales per day,” understand that it trends downward as more users enter our system.
Here’s an overview of the typical Amazon seller’s daily stats:
Note: The month-over-month trend in all of our metrics are largely influenced by the pool size, or total number of users. Since there are many more smaller sellers than larger sellers, as Ad Badger grows its user base, this number will reflect the average of all users on our platform.
In the future, we’ll break things out into cohorts, like average ACOS of companies with over $100k/yr in sales, and so on. This will make it easier to compare yourself to similar companies. In addition, Ad Badger will soon be able to segment metrics by niche.
With that out of the way, let’s jump straight into the first metric: Click Through Rate.
What is Amazon’s Average Click Through Rate (CTR)?
The average CTR on Amazon Advertising is 0.41%. Being right at or above that is usually a good target.
Average CTR on Amazon
A click-through-rate (CTR) is the total number of clicks your ad gets divided by the total number of impressions. A good example for understanding CTR is if you get 1 click on your ad per 100 impressions, then you’ll have a 1% CTR.
How do you Improve your CTR?
A really low CTR on Amazon means buyers aren’t finding your ad compelling enough to click on it based on what they seek.
This can either mean you need to optimize your keyword targeting OR you have quality issues with your listing. Or both!
Listing quality issues that negatively affect your Amazon CTR include:
What is the Average Cost per Click (CPC) on Amazon?
What is CPC?
Cost-per-click (CPC) is the amount you pay when a customer clicks your ad.
Amazon PPC is an auction, so the price you pay is just a penny more than what the next highest bidder is willing to pay for that keyword.
For example, if you bid $3 and the next highest bid was $1.00, then your CPC would be just $1.01 even though the highest bid was $3.
While the highest bidder has the best chance of winning, a lower CPC means a higher ROI. The average CPC on Amazon Ads prior to 2020 was $0.71, but 2021 saw the increase of rising CPCs.
The current average CPC on Amazon is $0.89.
To learn more about Amazon’s rising CPC and how to remedy it, including innovative strategies, check out our free series on YouTube, The PPC Booster series.
Here’s an overview of what to expect:
Competition and CPC
CPC is a metric heavily dependent on a few different factors, especially competition level. Greater competition will lead to higher CPCs because you’re bidding against other sellers to win the best placement for your ad in front of searching customers. This is precisely why we’re seeing a spike in Amazon CPC in 2021.
Make sure to optimize your campaigns to get the lowest CPC.
Lastly, let’s look at how average CPC evolves over time. While less stable than CTR, you can usually find it somewhere in the $0.50 to $1 range.
What is Amazon’s Average Conversion Rate?
What is conversion rate (CVR?)
Conversion rate on Amazon is the percentage of clicks on your ad that convert into sales.
The average conversion rate on Amazon is 9.87%. Of course, like all metrics, these averages are widely different based on the niche. This percentage is the most up-to-date number, taken from the Ad Badger App that serves hundreds of different niches.
It’s important to note that more expensive products ($100+) will typically have lower conversion rates as customers like to shop around and compare products before making their final decision to purchase.
Average Amazon PPC Conversion Rate
NOTE: the average eCommerce conversion rate for websites other than Amazon is about 1.33%. This means an average conversion rate of 9.89% speaks volumes about the power of Amazon. These audiences are coming in hot at the bottom of the funnel and ready to buy.
Furthermore, according to the graph below, conversion rates are routinely in 7-10% range, which is by far better than the previously mentioned 1.3% stat from non-Amazon sites.
Conversion Rates in Context
- Larger time frames and sample sizes increase the accuracy of conversion rates. After all, more data is always better.
- Strong and numerous competition lower conversion rates because customers have more quality options to choose from.
- Profit is king. No matter how good your conversion rate, it doesn’t matter if you aren’t making any money. Always check to make sure higher conversion rates are actually pulling in enough revenue to offset any expenses.
How do you improve your Amazon CVR?
If your conversion rate is significantly lower than the average, it may be a good indication that your campaign, your listing, or BOTH your campaign & listing need attention.
Only seeing a poor conversion rate when looking at a particular keyword or term means that keyword or term isn't very relevant to your ad, so customers aren't buying it when they land on your product.
Example: For a Christmas tree seller, one of your keywords could be "Christmas Tree (broad)." If a customer searches for "Christmas tree stand," your ad may appear for "Christmas Tree" since your keyword is of the broad match-type.
Your ad for your Christmas tree appeared when a customer wanted to find a tree stand. The ad wasn't relevant to what the customer wanted so they likely left your tree listing without buying, lowering your conversion rate.
A consistently low conversion rate across all keywords or terms may mean it's a good idea to analyze your listing quality for potential issues.
Actionable Steps to improve Amazon CVR
Now that you’re an Amazon conversion rate expert, let’s move onto one of the most important stats— ACOS.
What is the Average Amazon Advertising Cost of Sales (ACOS)?
What is ACOS?
ACOS is total ad spend divided by total sales. An easy example is if your ACOS is 25%, then you’re spending $0.25 on ads to make $1.00 in sales.
What’s a good ACOS for Amazon PPC beginners?
We recommend Amazon PPC beginners stay near the general average, which currently is 27.17%.
Average ACOS on Amazon
How do I Calculate my target ACOS?
It’s important to understand what your campaigns’ current ACOS is and what your Target ACOS is. Michael, Ad Badger CEO, has a great video on calculating your target ACOS.
Knowing your target ACOS is essential for proper bid optimization and for understanding the performance of an account, campaign, ad group, keyword, term, or ASIN.
If you really want to get into the details, our data shows average ACOS generally varies somewhere in the 20%-36% range.
What are Amazon’s Average Daily Impressions?
What is an impression on Amazon?
An impression, sometimes also called a view or an ad view, refers to the moment an ad is viewed by an Amazon customer, regardless of whether or not the ad was clicked.
How many daily impressions should you expect for Amazon PPC?
Based on our 2020 data, the average number of daily impressions per user per day was 101,265. However, this data changed significantly in 2021.
Amazon’s Average Daily Impression in 2021 is anywhere between 40,000 to 60,000.
Average Impressions per User per Day on Amazon in 2020
Amazon’s Average Daily Impressions decreased by nearly half because of the pandemic’s impact on global marketplaces and the influx of Amazon sellers.
How do I Increase my Daily Impressions?
Learn to drive both organic and paid traffic if you want to increase the number of impressions your ads get.
According to Daniel Tejada, an Amazon sales manager at Blue Wheel Media, for new products, it’s best to use paid ads to drive 90% of traffic initially and to rely little on organic traffic. However, as the product matures, he suggests that it’s better and better to transition to nearly 90% organic traffic eventually.
The point is clear: use paid traffic early to increase daily impressions and then move to an organic traffic strategy.
It also never hurts to fine-tune your SEO practices.
What is Amazon’s Average Daily Clicks?
Just like it sounds, daily clicks are the total volume of clicks on your ads per day.
The average daily clicks on Amazon is around 382 per user.
Average Clicks per User per Day on Amazon
Impressions naturally lead to clicks.
Once your products have a high number of impressions, it’s up to you to optimize your main image, title, and other listing attributes to convince buyers to click on your product in a sea of options.
As you can see here, average daily clicks tends to vary widely over the months. It’s best used with impressions and conversions to inform decisions.
What are Amazon’s Average Daily Conversions?
What is a conversion?
A conversion is when someone clicks your ad and then purchases that product.
Don’t confuse this number with units sold. One conversion alone could result in 10 units sold if the one converting customer buys 10 units. Two conversions could also result in 10 units sold if two converting customers buy 5 units each.
The average amount of conversions on Amazon Ads is 36.67 conversions daily.
Average Conversions per User per Day on Amazon
What is Amazon’s Average Daily Spend (Cost)?
What is the Average daily spend (cost) on Amazon?
Average daily spend is the amount of money you spend on advertising a day. It can be measured at the account, campaign, ad group, or keyword level.
Are you wondering what your daily budget should be for Amazon PPC? How much should you be spending on your Amazon PPC? Well, the average seller spends about $268.21 a day.
Average Spend per User per Day on Amazon
How much should you spend on ads?
If you’re brand new to Amazon PPC and you’re launching your first campaign, it can be confusing figuring out where to start with your budget.
The amount you should spend on ads varies from business to business.
Some companies like to break down their marketing budget and set a certain amount of money aside for PPC every month. Some like to adjust their level of spend as they go. We recommend starting off with an automatic sponsored product campaign with a daily budget of ~$30.
This budget, coupled with a competitively sized bid, will help collect the data required to launch more well-optimized campaigns further down the road.
If you’re a beginner, go ahead and save yourself from inevitable disaster by reading our Complete PPC Guide.
Advanced Sellers should focus more on ACOS
For more advanced sellers, the most important focus is achieving target ACOS.
If you’re able to achieve an ACOS that’s consistently profitable or right at break-even, then you’ll ideally want as many impressions, clicks, and sales as possible at that ACOS.
Make sure you never run out of budget if your ACOS is in profit or right at break-even. Sales from the PPC side of your business greatly benefit the organic side of your business.
What is Amazon’s Average Daily Revenue (Sales)?
What is average daily revenue (sales)?
Revenue, or sales, is the amount of money you receive, including discounts, deductions, returns, and refunds. This is your gross income from which costs are subtracted to determine your net income.
How much daily revenue should you get from Amazon PPC? Our average Ad Badger app user earns $987.77 per day in sales.
Average Revenue per User per Day on Amazon
Daily revenue depends on a lot of different factors like impressions, clicks, conversions, price, and more. All the other stats show where you need to improve to ultimately get this metric up. Like we said before, profit is king for sellers and using the Ad Badger App can lead to double or triple growth.
How Ad Badger Increased Woodies’ Revenue by 216%
As you can see, the Badger gets the job done. Read more about the Woodies case study.
Another case study you might find interesting is one we published on behalf of Freshfield Naturals, available here, because we we increased their impressions by over 600%, tripled their clicks, and quadrupled their sales! Oh, and did we mention that we pulled all this off while lowering their ACOS by 18%?
Frequently Asked Questions
We are constantly on forums discussing Amazon marketing techniques with Amazon sellers.
We see tons of good questions that give insight into Amazon seller’s concerns, so, like any good Amazon PPC tool would do, we made a video about it.
If rapid-fire FAQs are more your jam, then you’ll enjoy this informative Ask Any PPC Question, where Ad Badger’s CEO answers 30 questions in 60 minutes.
Want More Stats?
Everyone wants more data! Check this post each month to see updated stats.
If you haven’t already, get our Amazon PPC Starter Kit to begin advertising on Amazon effectively.
Make sure to subscribe to our newsletter below so you don’t miss it, and comment below to tell us what kind of data you would like to see next!
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Choose your podcast platform on Anchor.
If you missed an episode, here are our previous episodes of The PPC Den Podcast:
- Find Your Bid Style: Which of These 7 Amazon PPC Personalities Are You?
- Should You Trust Amazon Advertising’s New Opportunity Tabs?
- How to Tell a Story with Amazon PPC Data to Boost Client Satisfaction
- Why Community Matters for Amazon Advertising
- How to Send Google Ads Traffic to Your Amazon Listing
- Who To Hire for Your Amazon Growth Team
- How to Optimize for Total ACOS Goals in Amazon Advertising
- A Case for Segmenting Branded Keywords in Amazon PPC
- Ask Any PPC Question with Steven Pope of My Amazon Guy
- 5 Important Factors That Influence Amazon Ranking
- Now Hiring Amazon PPC Digital Marketer
- What To Do When Diagnosing ACOS Increase
- What To Do About Low Click – Low Sales Keywords
- How to Use Amazon’s New Budget Tab and Report
- What To Do About Rising CPCs (PPC Boosters Series)
- Should You Segment Automatic Sponsored Product Campaigns?
- When to Pause an Amazon Advertising Campaign
- Your Guide to Amazon Prime Day 2021
- Search Term Impression Share Reports for Amazon PPC
- How to Scale Your Amazon PPC Account
- How You Can Approach Seasonality in Amazon PPC
- Getting the Most Out of Amazon Reporting
- Amazon’s New Sponsored Display Audiences
- The Sponsored Display Double-Tap
- 10 Tips to Become a Great Amazon PPC Manager
- Getting the Most Out of Amazon PPC Management
- The ACOS Power Ratio for Amazon PPC
- Balancing Amazon PPC Optimization and Expansion
- 3 Reasons You’re Still Not Using Bulk Sheets & What to Do About It
- 5 Hidden Amazon PPC Ratios
- Is Exact Match Always Best?
- 3 Questions to a Perfect Amazon Product Page
- The Trinity of Amazon PPC Revenue
- Ad Badger’s Amazon SEO Guide Part 4: Combining PPC and SEO
- Ad Badger’s Amazon SEO Guide Part 3: Into the Strike Zone
- Ad Badger’s Amazon SEO Guide Part 2: The Midgame
- Ad Badger’s Amazon SEO Guide Part 1: Getting Started
- A Look at Amazon’s New Sponsored Display Reports
- What are Dayparting and Weekparting in Amazon PPC?
- Our Wish List for Amazon PPC
- Thinking Strategically About Amazon Advertising
- How Keyword Dumping Ruins your PPC Campaigns
- How to Become an Amazon Sponsored Display Master
- How and Why to use Negatives in your Amazon PPC
- Amazon’s New Sponsored Brands Reports
- How to Find New PPC Keywords with Reverse ASIN Lookup
- Getting High-Quality Product Reviews on Amazon with Andy Lam
- The Podcast Turns 100
- How to Optimize Hundreds of Auto Campaigns at Once
- Prime Day Preparation: Capitalizing on the Most Important Days of the Year
- Ad Badger & Bobsled Marketing: Staying on the Cutting Edge of Amazon PPC
- What Do I Do When a Keyword Doesn’t Convert?
- Keyword Cannibalization: Good or Bad?
- How One Keyword Can Apply to Multiple Products
- Ad Badger & TurnKey: Amazon Product Listing Optimization
- Seven Habits of Highly Effective Amazon PPC-ers
- Ad Badger and ZonGuru: Boost Your SEO with High Value Keywords
- Answered Prayers: Negative ASIN Targeting Comes to Auto Campaigns
- Much Ado About Budgets
- How to Get Over 100% Conversion Rates on Sponsored Display Ads
- New Launch Strategy for New Products: Skip the Auto?
- Amazon PPC Data Trends to Shape Your 2020 Strategy
- How Does Amazon PPC Work With Misspellings?
- Following Amazon’s Suggestions? The Mysterious “Suggested Bid”
- Negative ASIN in Amazon PPC Auto Campaigns: Is it Possible (Part 2)
- Negative ASIN in Amazon PPC Auto Campaigns: Is it Possible (Part 1)
- When You Should DIY Your PPC (and When You Shouldn’t)
- An Introduction to Targeting Options on the Amazon DSP
- Optimizing on a Hunch
- 5 Things You Don’t Know About Product Targeting
- Amazon PPC Stats During COVID-19| April 2020
- Sponsored Brand Ads Update: Now You Can Edit Creatives
- Amazon PPC Stats During COVID-19
- Seller Central Campaign Manager is Moving to Amazon Ad Console in 2020
- Taking Your Amazon Products & Campaigns Global: A Primer
- Best Practices for Selling on Amazon During COVID-19
- Principles and Mindset for Amazon Marketers During Coronavirus
- Coronavirus (Covid-19) and Your Amazon PPC Campaigns
- Incorporate “Adjust Bids by Placement” into Your Keyword Bids (Part 2): Multi-Keyword Campaigns
- Incorporate “Adjust Bids by Placement” into Your Keyword Bids (Part 1): Single Keyword Campaigns
- Grow Your Amazon Campaigns with Demographics Data
- What Consumer Behavior Says About You: Amazon Brand Analytics
- How to Raise Lifetime Value with Market Basket Report
- Search Frequency Rank: How to Identify Most Important Keywords
- Long Tail Search Terms: Amazon PPC Silent Killer
- 7 Tips to Get More Clicks on Amazon Ads
- LIVE Amazon PPC Campaign Audit
- Amazon PPC Keyword Research in 2020: RPSB Revisited
- Our Top Predictions for Amazon PPC in 2020
- 7 Bad PPC Habits to Kick in 2020 (And 3 Good Ones to Start)
- The PPC Tasks We Put on Our Project Management Tools
- A Data- Oriented Approach to Advertising in December
- The Wait is Over… Search Term Reports for Sponsored Brand Ads are Here
- What to Do When It’s Time to Sell Your Amazon Business with Coran Woodmass
- Ramping Up for Cyber Monday and Black Friday with Data-Driven PPC Strategies
- Amazon PPC Campaign Structure: 6 Layers of Complexity
- Amazon PPC Today vs. Yesterday: What’s Changed, What Hasn’t
- Make Your Best Keywords Better with Single Keyword Campaigns
- 6 Levels of Amazon PPC Mastery
- How to Advertise Commodity and Unique Products with Lukas Matthews
- Amazon SEO – Bridging the Gap with PPC
- Amazon’s New Sponsored Display Ads (Beta)
- Listener Q&A: Optimizing Placement Settings
- The Problem With Optimizing Low-Converting Products (And How to Solve It)
- 4 Reasons Why Lowering Your Bids Won’t Always Lower your ACOS
- What to Expect From 30 Days of Running Amazon Ads
- Should You Segment Your Branded Keywords in Amazon Ads?
- Promoting your Products with Amazon Coupons
- Three Effective Ways to Optimize Amazon PPC Bids
- 4 Things Amazon Does Better than Google and Facebook
- Amazon DSP with Kiri Masters
- Increase Conversion Rates for Sponsored Brand Ads
- Clickfraud, Who to Hire, and More Common Amazon PPC Questions
- A Data-Driven Approach to Prime Day PPC
- Improving Your Account With Amazon Reports
- The Complete Guide to Self-Auditing Your Campaigns
- A Round-Table Discussion About Placement Settings
- My 5 Predictions for the Future of Amazon PPC
- The Importance of Indexation for Amazon PPC
- Click Through Rate (CTR) Rundown
- An Introduction To Bulk File Operations
- The Latest Sponsored Brand Ad Updates
- Defining Your PPC Goals & Setting ACOS Targets
- Making Sense of New to Brand Metrics
- Should You Bid on Competitors’ Branded Keywords
- Our Gripes About Amazon Sponsored Brand Ads
- Amazon Advertising Launch Strategy for New Products
- The Ultimate Amazon PPC Roadmap
- How to Scale Using PPC – A Case Study
- The Star-Crossed Lovers (Organic & Paid Traffic)
- Cranking Up Conversion Rates
- All Things Negative Keywords
- The Dreaded Amazon Data Reporting Delay
- What We Love About Amazon PPC
- First Look on New Bid Options in Amazon
- Dissenting Thoughts on PPC Budgets
- The Strangest, Most Popular PPC Strategy: The Keyword Dump
- Product Targeting – Into the Great Unknown
- Campaign Naming Systems
- Hitchhiker’s Guide to Sponsored Products (Part 2)
- Hitchhiker’s Guide to Sponsored Products (Part 1)
- Amazon PPC Advertising Stats
- The Advanced Basics of Amazon PPC
- Amazon’s New Product Targeting Features
- The Bid+ Conundrum
- Why We’re Living In The Golden Age of Amazon PP