For years, Amazon sellers have struggled with fundamental questions: Is my advertising CPC too high? Is my conversion rate meeting industry standards? Previously, merchants had to rely on experience and fragmented market data to navigate these challenges. Now, Amazon has unveiled a powerful solution—the Benchmarks feature—providing sellers with unprecedented visibility into industry metrics and enabling data-driven advertising optimization.
The "Official X-Ray" for Amazon Advertising
Amazon has officially launched its Benchmarks feature in the advertising backend, a tool industry experts are calling the "official x-ray" for seller performance. Currently available for Sponsored Brands (SB) and Sponsored Display (SD) campaigns, this feature provides sellers with official, visualized category comparison data to facilitate more effective campaign analysis and optimization.
Key Insight: Benchmarks serves as a "data compass" that helps sellers navigate the complex Amazon advertising landscape by comparing their performance against category averages across six critical metrics.
Six Core Metrics for Comprehensive Comparison
The Benchmarks feature allows sellers to filter data from the past 30 days by week or day, focusing on these six key performance indicators:
- New-to-brand purchases: Measures ad effectiveness in reaching and converting new customers
- New-to-brand purchase rate: Evaluates new customer conversion potential and brand appeal
- Cost-per-click (CPC): The fundamental metric for traffic acquisition cost
- Click-through rate (CTR): Reflects listing attractiveness in search results
- Cost-per-acquisition (CPA): Measures advertising conversion efficiency
- Cost-per-thousand impressions (CPM): Key reference for advertising exposure costs
This marks Amazon's first visualization of advertising category benchmark data. Through built-in line charts, sellers can clearly identify gaps between their performance and industry standards, enabling more precise optimization strategies.
Core Value: Distinguishing Market Trends from Operational Issues
The primary benefit of Benchmarks lies in its ability to help sellers determine whether performance fluctuations stem from market conditions or operational shortcomings:
- When both your metrics and category benchmarks decline: This indicates broader market challenges (such as reduced demand), suggesting no need for drastic strategy changes.
- When your metrics decline while benchmarks improve: This signals that competitors are advancing while your strategy lags, requiring immediate review of targeting and listing optimization.
For example, if your CPC is $1.15 while the category benchmark is $1.68, your traffic costs outperform most competitors. Conversely, a higher CPC warrants examination of bid settings.
Deep Dive: CPC and CTR Analysis Strategies
CPC Benchmark Analysis
CPC serves as the critical metric for evaluating traffic acquisition efficiency:
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CPC below benchmark:
- With strong CTR and CVR: Maintain current strategy
- With weak CTR and CVR: Optimize keyword relevance
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CPC above benchmark:
- Review bid premiums for non-core keywords
- Improve keyword structure to enhance targeting precision
CTR Benchmark Analysis
CTR reflects listing attractiveness (main image, title, price) in search results:
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CTR below benchmark:
- Conduct A/B testing for main images
- Optimize title keyword placement
- Adjust pricing strategy
- Enhance review content
- For SB/SD campaigns: Improve video and A+ content
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High CTR but poor ACOS/ROAS:
- Focus on product page conversion optimization
- Implement promotional tools like coupons
- Enhance Q&A and review sections
Accessing and Using the Benchmarks Feature
To utilize Benchmarks:
- Log in to Amazon Advertising Console and navigate to "Campaign Manager"
- Locate the "Benchmarks" view (appearing as a tab or icon)
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Set filters:
- Campaign type (SP, SB, SD)
- Time granularity (daily, weekly, monthly)
- Date range (default: past 30 days)
- Data dimension (Campaign, Ad Group, Category)
- View comparison data showing your performance versus category benchmarks
Important Notes: Currently available only for US marketplace; requires brand registry; small campaigns may lack sufficient data; avoid relying solely on CPC/CTR; new products may naturally have higher initial CPC; data shows 1-2 day latency.
Conclusion: Data-Driven Growth for Smarter Advertising
The introduction of Amazon's Benchmarks feature represents a significant advancement in advertising analytics. By providing clear industry comparisons, this tool empowers sellers to make informed optimization decisions, moving beyond guesswork to achieve measurable performance improvements and sustainable growth.