Amazon Advertising Stats: November 2018 Update

The Badger loves numbers. Knowing how a campaign stacks up against the average Amazon Seller is a unique advantage that we all have as members of The Badger Den. 

As a continuation of my post about Black Friday Amazon Advertising stats from last year, we will discuss the ad data we've collected from Ad Badger users so far in 2018. This is a post designed to be continually updated throughout the year, so keep checking back to get new metrics.

Recent Amazon Advertising Stats For 2018

Here are the numbers per Ad Badger user per day for the last two months:

Amazon PPC Advertising Stats

Important Considerations for Amazon PPC Stats

Until we’re finished digging our secret Badger-Tunnel underneath Amazon’s Severs to give you super-secret data - the most accurate data we have comes from data that is being funneled through Ad Badger users account. In 2018, Ad Badger more than tripled its user base. So every month our data gets more and more accurate. When we had just 20 users, vs 100, vs 200, our data gets more and more accurate. Some of what you see is a result of that.

Who’s 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. This means 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. In the future, we’ll break things out into cohorts (like CTR of companies over 100k/yr in sales, and so on). This will make it easier to compare yourself to similar companies. In addition, The Badger will add metrics by industry. 


Average Daily Clicks

How many daily clicks should you be getting for Amazon PPC?

Definition: The total volume of clicks on your ads, or visits to your listing.

Data: The number of average clicks per user per day in Amazon advertising is 185 clicks.

Everyone wants more clicks to their Amazon listings, but not everyone knows how to drive the organic and paid traffic their business needs.

Note: The month over month trend in this metric is largely influenced by our amount 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. Future versions of our Amazon PPC Stats will include separate cohorts for companies doing over $1m and companies doing under $1m. Ad Badger users can usually see a double or triple digit growth.


Average Daily Impressions

How many daily impressions should you be getting for Amazon PPC?

Definition: An impression, sometimes also called an ad view or a view, refers to the moment an ad is viewed (not clicked yet) by an Amazon customer.

Data: The average number of impressions per user per day in Amazon advertising is 56,170 impressions.

If you want to increase the number of impressions your ads get, it's important to learn to drive both organic and paid traffic.

Note: The month over month trend in this metric is largely influenced by our amount 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. Future versions of our Amazon PPC Stats will include separate cohorts for companies doing over $1m and companies doing under $1m. Ad Badger users can usually see a double or triple digit growth.


Average Daily Spend (Cost)

Are you wondering what your daily budget should be for Amazon PPC? How much should you be spending on your Amazon PPC?

Definition: The amount of money you’ve spent in a particular account, campaign, ad group, or keyword. 

Data: The average amount of spend per user per day in Amazon PPC is $186.13.

If you're brand new to Amazon PPC and you're going to launch your first campaign, it can be a bit confusing trying to figure out where to start with your budget. How do you know how much to spend on ads? The amount you should spend on ads obviously 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. If you're brand new to Amazon advertising, we'd 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, you should go ahead and save yourself from inevitable disaster by reading our guide.

If you're a more advanced seller and you're wondering what to do with your budgeting, the most important thing to focus on is achieving your target ACOS. If you're able to achieve an ACOS that's consistently profitable or right at break even, then you ideally want as many impressions, clicks, and sales as possible at that ACOS. Make sure you're never running 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.

Note: The month over month trend in this metric is largely influenced by our amount 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. Future versions of our Amazon PPC Stats will include separate cohorts for companies doing over $1m and companies doing under $1m. Ad Badger users can usually see a double or triple digit growth.


Average Daily Conversions

How many daily conversions should you be getting for Amazon PPC?

Definition: A conversion happens when someone interacts with your ad (clicks your ad) and then takes an action you’ve defined as valuable (purchases).

What's the average amount of conversions per day on Amazon Ads?

Data: The average number of conversions per user per day in Amazon advertising is 18 conversions.

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.

Note: The month over month trend in this metric is largely influenced by our amount 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. Future versions of our Amazon PPC Stats will include separate cohorts for companies doing over $1m and companies doing under $1m. Ad Badger users can usually see a double or triple digit growth.


Average Daily Revenue (Sales)

How much daily revenue should you be getting for Amazon PPC?

Definition: 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.

Data: The average revenue per user per day in Amazon PPC is $487.72.

Check out this case study of an Ad Badger user growing his revenue 216%.

Note: The month over month trend in this metric is largely influenced by our amount 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. Future versions of our Amazon PPC Stats will include separate cohorts for companies doing over $1m and companies doing under $1m. Ad Badger users can usually see a double or triple digit growth.


Average Conversion Rate

What's a good conversion rate what's a bad conversion rate on Amazon?

Definition: Your conversion rate is the percentage of clicks on your ad that convert into sales.

Data: The average Amazon PPC conversion rate is 9.78%. This is a great benchmark to shoot for if you’re just starting your ad campaigns from fresh and aren’t sure what your conversion rate should look like on Amazon.

Keep in Mind: the average eCommerce conversion rate off of Amazon is 1.33%. This means an average conversion rate of 9.78% speaks volumes about the power of the Amazon.

"How do I fix a bad conversion rate on Amazon?"

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. If you only see a poor conversion rate when looking at a particular keyword or term, it's likely that the keyword or term you're reviewing isn't very relevant to your ad so customers aren't buying when they land on your product.

Example: If you're selling Christmas trees, 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. In this example, 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 was looking for, so they likely will leave your tree listing without buying. This lowers your conversion rate.

If you notice a consistently low conversion rate across all keywords or terms, it may be a good idea to analyze your listing quality for potential issues there.

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


Average CTR

What's a good CTR (click-through-rate) and what's a bad CTR on Amazon?

Definition: Your Click Through Rate (CTR) measures the number of clicks on your ads per number of impressions. For example, if you get 1 click on your ad per 100 impressions, you’ll have a 1% CTR.

Data: The average CTR in Amazon advertising is 0.33%.

If you have a really low CTR, buyers on Amazon aren’t finding your ad very compelling to click on based on what they’re searching for. This can either mean that your targeting needs to be more optimized OR that you have some listing quality issues to pay attention to. Listing quality issues that can affect your CTR negatively usually include:

  • Main image quality
  • Title quality
  • Number of reviews
  • Review score
  • Fulfillment method
  • Pricing
  • Etc...

Average CPC

What's a good CPC (cost-per-click) and what's a bad CPC on Amazon?

Definition: Your Cost Per Click (CPC) is the amount you pay when a customer clicks your ad. Remember that Amazon PPC is an auction and these CPC prices are equal or less than the highest bid a seller places on a keyword. Sellers want a low CPC to maximize the return they get on an ad.

What's the average cost per click on Amazon PPC?

Data: The average CPC in Amazon advertising is $1.01.

This metric is heavily dependent on different factors. One example of a factor that can greatly impact your CPC is your competition level. Greater competition will lead to a higher CPC because you’re bidding against other sellers to decide whos ad appears in front of a customer. 


Definition: Your Advertising Cost of Sale (ACOS) is your total ad spend divided by your total sales. If your ACOS is 25%, you’re spending $0.25 on ads to make $1.00 in sales.

Data: The average ACOS in Amazon advertising is 38.16%.

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 targeting 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.


Frequently Asked Questions

We are constantly on forums discussing Amazon marketing techniques with Amazon sellers. We see tons of good questions that gives us insight into what Amazon sellers are concerned with. So, like any good Amazon PPC tool would do, we made a video about it.

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.

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