Amazon Ads benchmarks push brands toward higher bids, not budget cuts
· 13h ago · Originally reported by PPC Land
Amazon's benchmark guidance for advertisers across 18 countries consistently recommends testing higher bids when CPC or CPM falls below peer medians, rather than trimming spend. The analysis questions whether Amazon's spend-weighted median truly represents half of all peer brands, raising concerns about how the benchmarks are constructed and applied.
Why it matters
Benchmarks shape how brands allocate budget, so if the reference point is spend-weighted toward big spenders, smaller advertisers may be nudged to bid more than they need to. Understanding the methodology helps advertisers judge whether 'below benchmark' really means underperforming.
Explain it like I’m new here
It's like a store telling you everyone else pays more for the same toy, so you should too — without mentioning the average is skewed by a few rich kids buying in bulk.
Terms in this story
Advertiser
An advertiser is the company, organisation or person that pays to place ads in order to sell products, build a brand, recruit, or spread a message.
CPC (cost per click)
CPC (cost per click) is a pricing model where the advertiser pays only when someone clicks the ad, and also the average amount paid per click.
CPM (cost per mille)
CPM (cost per mille) is the price an advertiser pays for one thousand ad impressions; "mille" is Latin for thousand.
Guidance (forecast)
Guidance is a public company's own forecast of its future results, such as next quarter's revenue or full-year adjusted EBITDA, usually given as a range alongside an earnings report.
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