Reference Guide for PPC Benchmarks

These tips should be helpful for Amazon Sellers who are interested in running PPC campaigns through Sponsored Products on Amazon.

Your mileage may vary a bit but these are the general averages.

SPEND: – Expect 10% of your overall GROSS product sales to be spent on advertising

SALES: – Expect 15% – 25% of your overall sales to come from paid advertising once your campaigns are optimized and your listing is mature.

IMPRESSIONS: – Expect at least 1000 ad impressions from each keyword THAT AMAZON CONSIDERS TO BE RELEVANT TO THE AUDIENCE Clicks: – *** CVR dependent*** – 5 clicks is usually where I can start to make a decision (meaning 1000 impressions x .5% CTR = 5 clicks)

A product with a 20% CVR will take 5 clicks before it gets a sale – you may want to give this benchmark some room to get moving for you.

ORDERS: – **Very dependent on CVR** – A keyword with 20,000 impressions, .5% CTR, and 10% CVR should expect 10 sales as example.

ACOS: – Expect to start with some keywords having a higher than breakeven ACOS. This reduces after regular campaign optimization, SO MAKE SURE YOU HAVE THAT WORKFLOW PLANNED BEFORE SPENDING MONEY ON ADVERTISING!!

CTR: – .4% or greater and the keyword is healthy and is reaching the audience. Less than .2% signals either poor relevance or SIGNIFICANT competitive alternatives.

CPC – Varies based on the product niche – can be between .30 cents and $2.50 per click

CVR: – Typical private label product = 9% – 18%. Products having variations (size, color, etc.) should expect to have a conversion rate between 5% and 10%

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