Amazon Advertising Stats (2020 Update)

amazon-ppc-stats-conversion-rates-cpc-acos

This is a post designed to be continually updated throughout the year, so keep checking back to get the latest metrics. Last Updated: July 16, 2020 

The Badger loves numbers. He especially loves monitoring data trends data so that he can make informed decisions about 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 so far in 2020. Here’s what you can expect to learn:

  1. Who is the Average Amazon Seller?
  2. Average Click Through Rate (CTR)
  3. Average Cost Per Click (CPC)
  4. Average Conversion Rate (CVR)
  5. Average Advertising Cost of Sales (ACOS)
  6. Average Daily Impressions
  7. Average Daily Clicks
  8. Average Daily Conversions
  9. Average Daily Ad Spend
  10. Average Daily Revenue

Who is the Average Amazon Seller?

While there are over five million Amazon Sellers worldwide, in the USA, only 140,000 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 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.

Average Click Through Rate (CTR)

Your click-through-rate (CTR) is the total number of clicks your ad gets divided by the total number of impressions. For example, if you get 1 click on your ad per 100 impressions, you’ll have a 1% CTR.

CTR Formula
How to calculate CTR

What’s a good CTR to have on Amazon? The average CTR is 0.41%. Being right at or above that is usually a good target.

Average CTR on Amazon

0.41%

How to Improve your CTR

A really low CTR means buyers on Amazon 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 can affect your CTR negatively usually include:

  • Main image quality
  • Title quality
  • Number of reviews
  • Review score
  • Fulfillment method (FBA or FBM)
  • Pricing

Before we move onto CPC, let’s talk about how average CTR changes over time. According to the graph below, average CTR has deviated from its usual average (between 0.30% and 0.40%) over the past six months. 

Average Cost per Click (CPC)

Your 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 is $0.71. If you can get a lower CPC than the average CPC of $0.71, you’ll be in a great position with your campaign.

Average CPC on Amazon

$0.71

Competition and CPC

This metric is 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. Make sure you’ve optimized your campaigns to get the lowest CPC.

Lastly, let’s look at how average CPC evolve over time. While less stable than CTR, you can usually find it somewhere in the $0.50 to $1 range.

Average Conversion Rate

Your conversion rate is the percentage of clicks on your ad that convert into sales.
Conversion Rate Formula
How to calculate conversion rate

The average conversion rate on Amazon is 9.55%. Of course, like all metrics, these averages are widely different based on the niche.

For example, 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

9.55%

NOTE: the average eCommerce conversion rate for websites other than Amazon is about 1.33%. This means an average conversion rate of 9.55% 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 the 10% range for our sellers.

Conversion Rates in Context

Although conversion rate is a useful stat on its own, it’s also important to consider the surrounding contextual factors that influence it:
 
  • 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.

Tips for improving Conversion Rate

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.

Listing Aspects to Analyze: main image, secondary images, title, bullets, copy, number of reviews, review score, feedback, fulfillment method, CTR, pricing, etc.

Now that you’re a conversion rate expert, let’s move onto one of the most  important stats— ACOS.

Average Advertising Cost of Sales (ACOS)

Your ACOS is your total ad spend divided by your total sales. For example, if your ACOS is 25%, you’re spending $0.25 on ads to make $1.00 in sales.
ACOS Formula

What’s a good ACOS when you’re just starting out with PPC? 

The average ACOS is 27.59%.

Average ACOS on Amazon

27.59%

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, a close friend of The Badger, 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.

Want to learn even more about ACOS?

Check out our guide on How to Tell the Difference Between a Good and Bad ACOS on Amazon

Average Daily Impressions

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 get for Amazon PPC? Based on our 2020 data, the average number of daily impressions per user per day was 101,265. 

Average Impressions per User per Day on Amazon

101,265

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

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

382

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.

average daily clicks amazon ppc amazon stats

Average Daily Conversions

A conversion happens 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

36.67

Average Daily Spend (Cost)

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

$268.21

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 a bit 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.

Average Daily Revenue (Sales)

Your 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 user is making $987.77 per day in sales.

Average Revenue per User per Day on Amazon

$987.77

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 Ad Badger can lead to double or triple growth.

How Ad Badger Increased Woodies’ Revenue by 216%

Woodies was one of the first large accounts on the Ad Badger platform. Once all their Seller Central data was loaded onto Ad Badger, the Bid Optimizer went to work to cater to their Target ACOS.
 
The Bid Optimizer worked furiously overnight to cut out wasted spend and lower their ACOS to reach maximum profitability. Negative Keyword rules were set to avoid wasted spend on clicks that didn’t pertain to Woodies’ product. 
Woodies Revenue and ACoS With Ad Badger

As you can see, the Badger gets the job done. You can read more about the Woodies case study here.

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.

Play Video

You can read the full post here.

Want More Stats?

Everyone wants more data! Check this post each month to see updated stats.

If you haven’t already, get guide the 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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