In 2025, the Amazon advertising landscape will be more competitive than ever. Sellers nationwide are paying close attention to Cost Per Click (CPC) trends to manage budgets, protect profitability, and maximize return on ad spend (ROAS). If you’ve noticed your CPCs creeping upward or even spiking, you’re not alone.
Data from Ad Badger indicates the average Amazon CPC in 2025 is about $1.04, a modest increase compared to the previous year, with fluctuations through the year. October 2024 dipped to $0.95, while June 2024 peaked at $1.14.
Another source estimates average Amazon ad CPCs at $0.71–$1.20 depending on category, keyword competition, and seasonality.
More broadly, many platforms report an average of $0.98 per click.
Clearly, CPCs are rising. But what’s driving that trend, how pronounced is it, and how can you stay competitive? In this post, we’ll unpack the data, analyze key drivers, and share practical strategies to help you manage rising CPCs and protect your margins.
Article Contents
Increasing Costs of Different Amazon Sponsored Ad Formats
It’s important to remember that not all ad types on Amazon are created equal, especially when it comes to cost. Here’s a snapshot of average CPCs by ad type in 2025:
Sponsored Products Ads: These remain the most commonly used and generally cost-effective, with average CPCs hovering around $0.85 to $1.10 depending on category.
Sponsored Brands Ads: These are more visual, often featuring a brand logo and custom headline. They command higher CPCs—usually between $1.10 and $2.50 per click.
Sponsored Display Ads: These CPCs vary widely, depending on targeting type (product targeting, audience targeting) and placement. Most sellers report CPCs in the $0.95 to $1.60 range.
So, if you’re running a Sponsored Brands campaign in a competitive niche like supplements, electronics, or pet supplies, don’t be surprised to see your average CPC climbing well above $2.00. Think of it like booking ad space on a busy highway—the more visible, the more expensive.
Are CPCs Increasing on Amazon in 2025—and by How Much?
If you’ve noticed your Amazon ad spend going up without a corresponding increase in clicks, you’re not imagining things—those click prices really are going up. Cost-per-click (CPC) is rising across Amazon’s advertising platform in 2025, and it’s impacting sellers in nearly every product category.
Let’s break down what’s happening, how much CPCs have increased, and why these changes matter for your business.
Category Matters—A Lot
Your product category heavily influences how much you’ll pay per click. Some verticals are simply more competitive than others, attracting bigger budgets and more aggressive bidding. It’s a bidding war. And the higher the stakes, the more you’ll pay to play. Here are a few examples:
Electronics: Due to intense competition and high average order values (AOVs), CPCs here often exceed $1.20, especially for high-demand keywords like “wireless earbuds” or “gaming laptop.”
Health & Personal Care: A hyper-competitive space with lots of aggressive players. CPCs frequently land in the $1.10–$1.50 range.
Home & Kitchen: This category is broad, and CPCs vary depending on the sub-niche. While basic items may have CPCs around $0.80, popular or branded keywords (like “air fryer” or “coffee maker”) can drive CPCs to $1.20+.
Beauty & Skincare: Skincare brands bidding on “anti-aging cream” or “hyaluronic acid serum” might see CPCs push up to $2.00—especially for Sponsored Brands or Display ads.
If you sell in these high-competition spaces, you’ve likely already felt this pressure on your budget.
Seasonality & Event-Based Spikes
Not all CPC increases are steady; some are sharp and short-lived, typically tied to big events like:
Prime Day
Black Friday/Cyber Monday
Back-to-School
Q4 holiday shopping season
During these periods, CPCs can spike by as much as 30%. It’s like surge pricing during rush hour—everyone wants a seat at the front. For example, in Q4 2024, Forbes reported that CPCs during Black Friday weekend rose 9.8% year-over-year, with top-converting keywords like “Christmas gift for dad” seeing particularly aggressive bidding.
If you’re not adjusting your bidding strategies during these times, you’re either:
Overspending (paying too much without return), or
Losing visibility (if you’re outbid by competitors who raised their max bids for seasonal visibility).
Historical CPC Growth: 2023 to 2025
Let’s look at the bigger picture:
2023: Average CPC across Amazon was around $0.89.
2024: This climbed to $0.96–$0.98 depending on category and timing.
2025: We’re now seeing averages in the $1.00–$1.10+ range, with some sellers paying far more in high-stakes verticals.
This equates to a 15–25% total CPC increase over two years. That extra $0.10 per click adds up fast, especially when you’re running hundreds or thousands of daily impressions.
For sellers with large catalogs or multiple ad campaigns, that can translate into thousands of dollars in added monthly ad spendwithout any guarantee of more sales unless your campaigns are well-optimized.
Why Amazon Advertising CPCs Are Rising in 2025?
If you’ve been watching your Amazon ad costs climb this year, you’re probably asking: Why is this happening? Is it just your category, or is something bigger going on?
The truth is, Amazon’s CPC increases in 2025 are part of a broader, multi-layered shift in the advertising landscape. Yes, competition plays a major role, but that’s just one piece of the puzzle.
Let’s break it down into the key forces driving up CPCs this year, with real-world examples to show how each factor affects sellers like you.
Increased Seller Competition
The most obvious reason for rising CPCs? More sellers are competing for the same ad space. The gold rush isn’t over—it’s just more expensive.
Amazon is no longer just a marketplace for independent sellers—it’s a full-blown media platform. In 2025, the number of brands advertising on Amazon continues to grow. Not just small private-label sellers, but enterprise brands, DTC startups, aggregators, and even non-endemic advertisers (brands that don’t sell on Amazon but still want exposure there, like insurance companies or mobile apps).
Example:
A seller in the vitamin supplements category might have paid $0.90 per click in early 2023. Now, in 2025, they’re seeing $1.30+ CPCs for the same high-volume keywords like “immune support” or “probiotic for women,” simply because 15 new brands have entered the space, many of them spending aggressively to gain initial traction.
This influx of new advertisers pushes up bids across the board, especially for top-of-search placements, which are in high demand but limited in availability.
How Big Sellers Are Driving Up the Costs
Another reason CPCs are rising is the increase in brand advertising budgets from major players. Household-name brands and large aggregators are pouring more money into Amazon Ads than ever before.
In fact, many use advanced tools like DSP (Demand-Side Platform) and custom audiences, effectively boxing out smaller sellers from top-of-search placements unless they’re willing to pay. If you’re a small brand, it can feel like bringing a slingshot to a cannon fight.
Additionally, retail media budgets are shifting toward Amazon, pulling in ad spend that might’ve previously gone to Google or Meta. As Amazon solidifies its place as the #3 ad platform globally (behind only Google and Meta), competition for limited ad real estate is intensifying.
Rise of Retail Media & Amazon DSP Budgets
Amazon is no longer just a shopping site—it’s a retail media giant. In fact, it’s now the third-largest digital ad platform in the world, after Google and Meta.
As retail media budgets increase, more brands are investing in DSP (Demand-Side Platform) campaigns, video ads, and retargeting. Many of these campaigns still rely on cost-per-click bidding structures or compete for the same placement inventory, which drives up CPCs across Sponsored Products and Sponsored Brands as well.
Example:
Big CPG (consumer packaged goods) brands like Unilever, P&G, and Nestlé are spending millions to target audiences through Amazon’s DSP. Their campaigns often involve broader targeting and bid aggressively on upper-funnel keywords, which makes it harder for smaller sellers to compete on even basic search terms.
The result? Even a simple keyword like “natural deodorant” that used to cost $0.85 now sees CPCs well over $1.50, as large brands pay a premium to appear in top positions—even if the conversions aren’t immediate.
Ad Saturation & Platform Maturity
Amazon Ads is a maturing ecosystem. When Sponsored Products first launched, it was a relatively quiet channel. Now, it’s saturated with:
Sponsored Products
Sponsored Brands
Sponsored Display
Brand Stores
Video in Search
Amazon DSP (retargeting)
Off-Amazon media driving traffic back into listings
All of these ad units are fighting for the shopper’s attention, especially in high-traffic placements like top-of-search or product detail pages.
This ad overload means your ads now compete not just with other Sponsored Products, but with dozens of ad types, many of which cost more to run. So you need to bid higher just to win a place in the queue.
Example:
A seller promoting their pet grooming tool now competes for the keyword “dog brush” with:
Sponsored Products from competitors
Sponsored Brands video ads
Sponsored Display retargeting ads
Product placements from aggregators with big budgets
To stay visible in the top 3 placements, they need to bid at least $1.25, up from $0.95 just a year ago.
Amazon’s AI-Driven Bid Adjustments
Amazon now offers more automation in its ad platform than ever before, especially with dynamic bidding and machine learning-based campaign suggestions.
While this is great for scaling, it also means that many sellers are relying on Amazon’s automated “suggested bids,” which are typically optimized for visibility, not efficiency.
The catch? If everyone blindly accepts Amazon’s recommended bid of $1.60 instead of $1.10, the system artificially inflates the cost landscape. Even if you used to compete profitably at $0.90, your average CPC could creep up simply due to algorithmic inflation. You might think you’re being smart by trusting the algorithm—but so is everyone else.
How to Stay Competitive Despite Rising CPCs
So you’ve seen the numbers. Amazon CPCs are steadily climbing in 2025, and unless you’re made of money, you’re probably wondering: How do I stay profitable without just throwing more budget at the problem?
Here’s the good news: you don’t have to outspend your competitors—you have to outsmart them.
Staying competitive on Amazon today is less about who has the deepest pockets and more about who can run lean, strategic, high-converting campaigns. Below, you’ll find proven, tactical approaches to thrive even as CPCs rise. No fluff, just action you can take.
1. Benchmark Your Performance—Then Set Smart Targets
Before making any changes, you need a baseline. Otherwise, you’re just guessing.
Start by benchmarking key metrics:
CPC (Cost per Click)
CTR (Click-Through Rate)
CVR (Conversion Rate)
ACoS (Advertising Cost of Sales)
ROAS (Return on Ad Spend)
2. Segment Your Campaigns for Laser-Focused Bidding
One of the most common mistakes sellers make is running bloated, one-size-fits-all campaigns. When CPCs are rising, waste is deadly.
Instead, break down your ad structure into tighter segments:
Branded terms (e.g, “Everfit yoga mat”)
Category keywords (e.g, “non-slip yoga mat”)
Competitor targeting (e.g, “Liforme yoga mat”)
Long-tail keywords (e.g, “eco-friendly yoga mat for tall people”)
Don’t let one bad keyword tank your whole campaign.
Why it works:
You can bid higher on high-intent terms that convert well
You can bid lower or pause poor performers without hurting your whole campaign
You gain better control over ACoS per segment
Example:
A seller segmented their campaigns this way and discovered their branded keywords were converting at 22% CVR with an ACoS under 15%, while category keywords were dragging their average down with poor conversion and a 60% ACoS. With that insight, they reallocated budget—cutting overall CPC by 18% without sacrificing sales.
3. Improve Your CTR and CVR—So Every Click Works Harder
You can’t always control the cost of the click. But you can control what happens after someone clicks.
Irrelevant traffic (e.g., blocking “free” or “DIY” if you’re selling premium tools)
Low-intent queries
Overly broad searches that drain the budget
Add negatives at the campaign or ad group level, and monitor your Search Term Reports weekly.
Example:
A kitchenware seller realized they were burning $800/month on traffic from the keyword “knife sharpener DIY kit” when they only sold electric sharpeners. Adding “DIY” as a negative immediately reduced wasted spend—and improved their overall campaign ROAS by 22%.
5. Diversify Ad Types & Placements
If everyone’s bidding on Sponsored Products, prices rise. Diversifying into less crowded ad types can help stretch your dollars. When everyone’s crowding the same lane, sometimes the smart move is to take the side road.
Try mixing in:
Sponsored Brands Video: Lower CPCs and higher engagement, especially on mobile
Sponsored Display (Views Retargeting): Great for re-engaging cart abandoners or detail page viewers
Amazon Posts (free!) to boost organic traffic and engagement
Example:
A fitness brand saw CPCs fall from $1.20 to $0.72 by shifting 30% of their ad budget from Sponsored Products to Sponsored Brands Video, which also had a 1.5x higher conversion rate.
6. Hire a Professional
Let’s face it, managing Amazon ads is complex. Especially if you are a busy seller and also need to juggle a dozen other tasks spanning everything from product sourcing to demand planning. You need to pick your battles and decide how you can spend your time in the most valuable way to grow your business.
If optimizing Amazon ads is your forte, then great, make that a core activity that you handle yourself, or if your spend is high enough, build up an in-house performance team.
However, if diving into the details of CTRs, CPCs, and ACoS gives you a headache, then consider hiring a professional Amazon Seller Agency such as SellerMetrics to help with Amazon Product Ads Management. Sometimes, it’s smarter to spend money on expertise than burn it on trial-and-error.
7. Drive External Traffic to Boost Organic Performance
Driving qualified traffic from outside Amazon is a double win:
You get sales that are often cheaper than Amazon clicks
Amazon’s A10 rewards listings that convert external traffic, improving your organic ranking and ad relevance
Don’t forget to use Amazon Attribution Tags so you can track performance and see what’s really working. A fantastic tool that helps increase the efficiency of external traffic is LandingCube.
LandingCube provides easy-to-deploy custom Amazon landing pages that you can layer in between your ads and your Amazon product pages. This allows you to optimize external ad traffic for email conversions and to then also use email addresses that you have collected to drive repeat purchases and maximize customer lifetime value (CLV).
Conclusion
Rising CPCs in 2025 are real but manageable. With data showing average CPCs around $1.00 and rising 10–15% year-over-year, it’s essential to adapt. By benchmarking performance, tightening targeting, improving listing quality, embracing automation, diversifying ad strategies, and measuring outcomes carefully, you can navigate these rising costs while protecting or even improving ROAS.
Adapt or pay the price—literally. Staying competitive means being smarter, not just spending more. Use every tool and insight to keep your campaigns lean, targeted, and profitable.
FAQ: Sponsored Ad CPCs are Increasing on Amazon
Are CPCs on Amazon increasing in 2025?
Yes. Average CPCs have risen to around $1.00–$1.05, up from ~$0.95 in late 2024, with seasonal peaks touching $1.14.
By how much have CPCs risen year‑over‑year?
Estimated increases are about 10–15% YoY, with major shopping events seeing spikes up to 30%.
Which ad format has the highest CPC?
Sponsored Brands often cost the most—between $1.10 and $2.50 per click, depending on category and creative costs.
Do all product categories experience the same CPC?
No. Categories like electronics average $1.12 CPC, while home & kitchen or fashion can be lower ($0.89).
How much do CPCs increase during promotions?
CPCs often rise ~10% during events like Black Friday or Prime Day, and can spike nearly 30% year‑over‑year
Does CPC always hurt ROI?
Not necessarily. Higher CPCs can be offset by improved listing strength, CTR, and conversion rates—especially if listings score well with Amazon’s A10 algorithm.
Should I stop bidding during CPC spikes?
Not necessarily. Instead, front-load budgets before spikes, adjust bids fast, and monitor performance closely—especially ROAS.
Can AI tools help manage CPCs?
Yes. AI tools like Perpetua, Quartile, or Amazon’s own automation can optimize bids dynamically for efficiency.
How important is external traffic?
Very. Sending traffic from social or email can improve listings’ performance under A10, potentially reducing CPCs and boosting visibility.
What are CPC benchmarks for smaller sellers?
Use tools like Ad Badger or Pacvue to compare your CPC, CTR, ACoS, and ROAS to similar sellers. Average daily spend for Amazon Ads is around $260, CTR ~0.35%, and ACoS ~30%.
