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Q3 2020 CPC Report: Increased Costs and Competition for Amazon Ads

  • October 14, 2020
Amazon Advertising Insights to Guide Your eCommerce Strategy

2020 was an unprecedented year for eCommerce advertising with COVID-19 and changes to US spending habits affecting the industry. How should these changes factor into your eCommerce strategy moving forward?

With consumers continuing to turn to eCommerce for their shopping needs, online advertisers have invested heavily on Amazon in both Sponsored Brand ads and Sponsored Product ads, increasing costs and competition for advertisers.

Learn exactly how the eCommerce industry changed with our “Q3 2020 CPC Report.”

In this quarterly report, we analyze our advertisers’ data in Q3 2020 to help brands make sense of the uncertainty and respond to shifts in the market. Collecting data from thousands of advertisers, this report is the most comprehensive and granular CPC report available.

Leverage Quarterly Data on Amazon Ad Performance

Highlights from the report include:            

  • Average Daily Spend for Sponsored Brand ads and Sponsored Product ads continue to rise
  • Sponsored Brand ROAS dropped significantly compared to Q2, now lower than Sponsored Product ROAS
  • Amazon CPCs bounced back in Q3 from the impact of COVID-19

Fill out the form on the right to learn more about these significant industry shifts.

With such a volatile year, looking at a few basic metrics doesn’t cut it. You need a complete, granular look at the KPIs most important to Amazon advertisers. Our Q3 2020 CPC Report compares five quarters of data in easy to interpret charts for a full view of this year’s eCommerce trends and their impact.

Detailed insights include:

  • Click-through-rate (CTR) for Sponsored Product ads saw a -24% QoQ change and a -21% YoY change.
  • Return-on-ad-sales (ROAS) for Sponsored Brand ads decreased 18% to $4.61 in Q3 2020.
  • Average daily spend for Sponsored Brand ads increased to $555.24 in Q3, a 19% QoQ increase and a 101% YoY increase.  

Read the full report by submitting your email to gain further insights into cost-per-click (CPC), conversion rate (CVR), and cost-per-acquisition (CPA) data.

Insights and Interpretations from Amazon Advertising Experts

What does this data mean?  

How can you apply it to your eCommerce advertising strategy?

Beyond the collected data to power your marketing engine, the Q3 2020 CPC Report also includes interpretations from our team of Amazon advertising experts. Learn what these trends mean for the entire industry and how to adjust your strategy accordingly.

Industry Specific Data and Highlights

How does your product category compare to the industry as a whole?  

While most product categories followed the same, industry-wide trends, 2020 created several outliers. If your company advertises in the Pet Supply or Clothing, Shoes & Jewelry categories, we’ve provided individual CPC data and interpretations.  

Gain month-by-month insights on industry specific ad performance, including:

  • CPCs in the Clothing, Shoes & Jewelry category dropped 30% YoY.
  • The Pet Supply industry maintained steady CPCs in Q2, avoiding the decrease seen in the overall industry average.

Gain vital insights to power your eCommerce strategy. Fill out the form to download the full report!

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