Overview

Amazon advertising costs are climbing sharply in 2025, with cost-per-click rates rising by double digits year-over-year across most major product categories. New benchmark data provides sellers with detailed performance ranges across Sponsored Products, Sponsored Brands, and Sponsored Display campaigns, offering a critical reference point for evaluating campaign health and protecting profit margins.

Key Points

• Sponsored Products CPCs — Now range from $0.80 to $1.40 per click, representing double-digit year-over-year increases across most categories
• Sponsored Brands CPCs — Command $1.00 to $1.80 per click, reflecting their premium placement and brand-building value
• Sponsored Display CPCs — Remain most affordable at $0.60 to $1.00 per click, though costs are rising here too
• Click-through rates by category — Beauty and personal care leading at 0.45%–0.60% while electronics trails at 0.30%–0.40%
• Conversion rates — Beauty products converting at 12%–15%, home and kitchen at 10%–13%, electronics at 8%–11%
• ACOS benchmarks — 2025 campaigns typically fall between 20%–30%, while healthy TACOS should remain between 5%–12%

Performance Metrics by Category

• CTR as effectiveness indicator — When CTR falls below category benchmarks, the issue typically lies in main images, titles, or keyword match types rather than bid amounts alone
• Conversion rate drivers — Price competitiveness, review quality, and listing optimization impact conversion rates more than raw ad spend
• Review threshold — Products with four-star ratings and at least 50 reviews dramatically outperform those with limited social proof
• Price sensitivity — A 5-10% price disadvantage can undermine both click-through and conversion rates
• Mid-ticket conversion range — Most categories achieving 10-15% conversion rates, though high-ticket niches like electronics trend toward the lower end