Cost of Advertising

Amazon's Cost of Advertising refers to the costs sellers spend on promoting their products through Amazon’s advertising platforms, including Sponsored Products, Sponsored Brands, and Sponsored Display Ads. Most ads on Amazon use a Pay-Per-Click (PPC) model, meaning you pay only when a customer clicks on your ad.

Here’s a quick breakdown:

• Sponsored Products: The most common type of Amazon ad, with an average Cost-Per-Click (CPC) of around $0.95. The amount can vary based on how competitive the words you're targeting are.

• Cost-Per-Mille (CPM): Used for Sponsored Brands and Display Ads and charges based on every 1,000 impressions. The average CPM is around $5.65. Similar to CPC, the cost fluctuates based on competition and demand.

• Daily Budgets: Sellers can set daily budgets for their campaigns, starting as low as $5 to $10 per day, and adjusting the budget based on performance.