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.

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