Q3 2025 Retail Media Benchmark Report

While CPCs remained flat YoY for both Sponsored Brands and Sponsored Products ads, CPCs did rise QoQ for both ad types as seasonal auction pressure—mainly from Prime Day and back-to-school shopping—drove average spend and advertising costs up.

While new-to-brand sales rose QoQ, as Prime Day promotions captured new shoppers, that metric also fell -7.6% YoY. Average daily page views, meanwhile, saw robust, double-digit growth QoQ and YoY, signaling improved efficiency and greater reach.

During Walmart’s summer promotional period, brand-focused ads became cheaper to run, likely because more advertisers shifted spend toward product-level ads to chase direct sales.

Taking advantage of lower Sponsored Brands CPCs (–24.0% YoY), advertisers captured stronger returns (+39.7% YoY), signaling renewed confidence in upper-funnel placements as a conversion driver.

With budgets scaling across ad types, Sponsored Brands and Products spend each rose double digits YoY, suggesting advertisers prioritized share growth during key seasonal events rather than short-term efficiency.

Display ads are getting a little more expensive as competition for on-site placements grows, but Sponsored Products costs are mostly holding steady — suggesting advertiser budgets are focused on performance stability rather than big bid increases.

Sponsored Products maintained price stability (CPC –1.0% QoQ) even as Display ad costs climbed, underscoring advertisers’ shift toward dependable, conversion-driven inventory.

Advertisers leaned back into Sponsored Products this quarter to maintain visibility and sales performance, while Display saw steadier, slower growth. This indicates a focus on conversion-driving placements over upper-funnel awareness during Q3.

After peaking mid-year, Target’s ROAS eased to $5.40 in Q3, suggesting advertisers faced higher acquisition costs amid steady auction pressure.

With CTR trending upward and budgets rebounding, Target continues to attract steady advertiser demand, even as rising CPCs put mild pressure on efficiency.

Electronics remained the top-performing category in Q3 2025, with ROAS improving 9.6% YoY to $12.08 — leading all 15 Amazon verticals. Beauty & Personal Care saw the fastest YoY ad spend growth at +27%, driven by seasonal promotions and influencer-led awareness. Meanwhile, Grocery and Health & Household sustained double-digit gains in conversion rate, signaling continued momentum in everyday essentials as brands optimize toward profitability and efficiency.