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- Interesting Insights on yearly CPC trends on Amazon
Interesting Insights on yearly CPC trends on Amazon
Amazon Advertising Lessons - May 19
George Reid
May 19, 2023
This week, we are trying something different with our weekly Advertising Lessons emails and adding an interesting deep dive we performed.
We conducted in-depth research on yearly CPC trends for Amazon Ads, from 2020 to 2023, analyzing 200+ accounts across the US, UK, FR, and DE markets.
Over the past few years, CPC trends for Amazon ads have remained relatively stable, with minor fluctuations based on the marketplace and Ad type. Understanding these nuances can greatly impact your ad performance and budget allocation. Let’s take a closer look at the findings:
Market-level findings:
From Q1 2020 to Q1 2023, the US is the only market to have seen a drop in CPC, though marginally: from 1.13 to 1.11. The actual dip happened in Q1 2021, with CPC falling to 1.07. It then continued increasing YOY to 1.08 and 1.11 in 2022 and 2023.
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In the UK, there has been a significant increase of 49%. From 0.39 in Q1 2020 to 0.58 in Q1 2023. The highest was in Q1 2022 at 0.61, then dropping slightly to 0.58 in 2023.
In France, CPC saw a YoY upward trend from 2020 to 2022, where the CPC was the highest at 0.73. but it fell considerably in 2023
In Germany, the trend is a constant YoY increase from 0.27 in 2020 to 0.71 in 2023 (+163%), which is significant.
Ad-types:
In the US, CPC on SP increased from 1.12 to 1.15. SB ads saw a more significant rise from 0.74 to 1.08. Though, CPC in 2022 was at peak, and slightly lower in 2023. While CPC on SD rather declined from 1.74 to 1.02
In the UK, CPC increases are more significant for all 3 Ad types: SP, SB and SD. For SP, the increase has been continuous YoY. While for SB and SD, the peak was recorded in 2022, which was followed by a fall in 2023.
This knowledge is instrumental in optimizing your ad campaigns and achieving a higher return on investment.
Top 3 learnings:
New brand metrics UI to understand your Brand funnel performance. It now offers a visual experience to help you understand your brand performance at different stages of the funnel: awareness, consideration, and purchase. [Read more].
Know the economic performance of your product SKU. The "SKU economics" is a useful tool that displays the economic performance of your product SKU over time. It shows the SKU sales, and various fees associated, including SP ads costs. [Read more].
Amazon is getting increasingly categorical with Ads placements.
There are various categories that limit which sponsored ads will show up, which include: 4 stars and above, customers frequently viewed, and products related to this item. [Read more].
Thanks,
George
PS: I’m sharing Amazon design reviews every day on Twitter all week. 4-hours a day. Just Amazon ideas, tips, strategies.
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