The Badger loves numbers, and we believe everyone should understand the essential Amazon advertising stats like CTR, CPC, Conversion rate, ACOS, and more.
Knowing how your campaign stacks up against the average Amazon Seller can guide PPC campaign improvements and provides a unique advantage over competitors.
We’re going to dive deep into the data we’ve collected from Ad Badger users so far in 2019. Here’s what you can expect to learn:
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.
Before we get into it, here’s an overview of the typical seller’s daily stats:
Note: The month over month trend in all of these metrics 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.
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 soon be able to segment metrics by industry.
With that done, let’s jump straight into 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.
So what’s a good CTR to have on Amazon? The average CTR is 0.36%. Being right at or above that is usually a good target.
Average CTR on Amazon
How to Improve your CTR
A really low CTR means buyers on Amazon aren’t finding your ad very compelling to click on based on what they’re searching for.
This can either mean you need to optimize your keyword targeting OR you’re having some listing quality issues (or possibly both!). Listing quality issues that can affect your CTR negatively usually include:
- Main image quality
- Title quality
- Number of reviews
- Review score
- Fulfillment method
Before we move onto CPC, let’s talk about how average CTR changes over time. According to the graph below, average CTR has consistently been hovering between 0.30% and 0.40% for the past 18 months.
Average Cost per Click (CPC)
Your cost-per-click (CPC) is the amount you pay when a customer clicks your ad.
Remember that Amazon PPC is an auction, so the price you end up paying 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 winning bid was $3.
While the highest bidder has the best chance of winning, a lower CPC means a higher ROI. If you can get a lower CPC than the average CPC of $0.97, you’ll be in a great position with your campaign.
Average CPC on Amazon
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 take a 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.
Average Conversion RateYour conversion rate is the percentage of clicks on your ad that convert into sales.
The average conversion rate on Amazon is 9.47%. This is a great benchmark to shoot for if you’re just starting your ad campaigns and you’re not sure what conversion rates should look like on Amazon.
Average Amazon PPC Conversion Rate
Keep in mind: the average eCommerce conversion rate off of Amazon is 1.33%. This means an average conversion rate of 9.47% speaks volumes about the power of Amazon.
Furthermore, according to the graph below, conversion rates are routinely in the 10% range for our sellers.
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.
- Paid traffic leads to higher rates than organic traffic.
- 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 more profit to your business.
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 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: 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 was looking for, so they likely will leave 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 there.
Listing Aspects to Analyze: main image, secondary images, title, bullets, copy, # 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.
What’s a good ACOS when you’re just starting out with PPC? The average ACOS is 34.42%.
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, 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.
And of course if you really want to get into the details, our data shows average ACOS generally varies somewhere in the 20%-40% range.
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 be getting for Amazon PPC? Based on our 2019 data, the average number of daily impressions per user per day was 103,990.
Average Impressions per User per Day on Amazon
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 374 per user.
Average Clicks per User per Day on Amazon
Impressions naturally lead to clicks. Once your products are getting 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 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.
What’s the average amount of conversions on Amazon Ads? 35 conversions daily.
Average Conversions per User per Day on Amazon
Average Daily Spend (Cost)
Average daily spend is the amount of money you’ve spending 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 $381.48 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 going to launch your first campaign, it can be a bit confusing trying to figure out where to start with your budget. 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. 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 Complete PPC Guide.
Advanced Sellers should focus more on ACOS
For more advanced sellers, 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.
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 be getting for Amazon PPC? Our average user is making $1,050.31 per day.
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 exist to show you 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%
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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