Amazon Strategies

Unlocking Amazon Ad Success: Insights from a Q4 Benchmark Report

The Amazon benchmark report shows that staying ahead in the competitive e-commerce landscape requires vigilant monitoring of your ad performance. It’s best to check quarterly—if not monthly—to gauge your brand’s position on Amazon and make data-driven adjustments. Here is the analysis of the Q4 2025 report I recently conducted for a US-based brand in the Health & Sports Nutrition category, highlighting key strengths, areas for improvement, and actionable recommendations to boost results.

Key Insights from Amazon Ads Benchmark Report for a Supplement Brand

Strong Performance in Attracting New Customers in Early Months: In October and November 2025, Sponsored Brands campaigns significantly outperformed benchmarks in per cent of purchases new to brand (100% in Oct and 75% in Nov, exceeding p75 benchmarks of ~69% and ~67%, respectively). This was paired with high new-to-brand purchase rates (0.21% vs p75 ~0.12%) and low costs per new-to-brand purchase ($1.05-$1.33, well below p25 benchmarks of $9.86-$11.95), indicating effective customer acquisition.

Action > Review and update keyword targeting to include seasonal terms like “holiday recovery” or “winter workout supplements,” excluding underperforming ones based on November data.

 

Decline in December 2025 Metrics: December showed a notable drop in new-to-brand purchase percentage (33.3%, below p50 ~63%) and rate (0.036%, below p50 ~0.089%), with costs rising to $4.73 (still competitive vs p25 $13.37 but higher than prior months). This suggests seasonal factors or increased competition impacting efficiency, particularly in Sponsored Brands.

Action > Create and test new video creatives emphasizing unique benefits (e.g., natural recovery), ensuring completion rates target above the p75 benchmark of ~1.35% by shortening videos to 15-30 seconds.

 

Superior Engagement and Cost Efficiency Overall: Across months, the brand achieved higher CTR (0.46%-0.81%, often above p75) and lower CPC ($0.28-$0.47, below p25) and CPM ($1.68-$2.82, below p25) compared to benchmarks in Sponsored Brands. Video formats contributed to this, with strong completion rates where available, highlighting better ad engagement than peers.

Action > Scale the use of video formats in Sponsored Brands by allocating more budget to them (e.g., 30-50% of total spend).

 

Sponsored Display Underperforms Relative to Brands: Sponsored Display campaigns had minimal or zero new-to-brand purchases in many cases, with higher costs per purchase (up to $780+ in some subcategories) and lower CTR (1.48%-4.14%, variable vs benchmarks). This ad product appears less effective for conversions compared to Sponsored Brands, which consistently drove better results.

Action > Adjust Budget and Bidding Strategies – Increase allocation to Sponsored Brands while reducing Sponsored Display spend, given the latter’s consistently higher costs and lower conversion rates in December benchmarks.

Book a call with us to find out how we can help you accelerate your health and nutrition brand on Amazon.

You may also like
Amazon Sponsored Products Budget Report: How Much Money Are You Losing?
Resolving Amazon Contact Response time issue

This is what shows when no widgets are added.

Amazon Ads Certifications

error

Enjoy this blog? Please spread the word :)