Amazon Ads CPMs: On Amazon vs Off Amazon
Many advertisers want a clear answer to one straightforward question: what is the average CPM for Amazon Ads?
In reality, there isn’t a single answer. Amazon advertising spans multiple environments, formats, countries, and campaign types, and CPMs shift depending on where the ad runs, which format is used, the market, and the campaign’s objective.
A more useful question is not just “what is the CPM?” but “what kind of inventory is being bought, where is it running, and what is the campaign trying to achieve?”
Having worked with Amazon DSP for many years, we’ve seen firsthand how CPMs can vary dramatically across campaigns. Our experience shows that context matters far more than any single benchmark, and understanding the nuances behind pricing is essential for making informed decisions.
What Is the Average Cost Per Thousand (CPM) for Amazon Ads?
The average CPM for Amazon Ads is often one of the first benchmarks advertisers look for when planning campaigns. However, there is no single number that applies across all campaigns, as pricing varies depending on where ads run, the format used, and the overall campaign context.
There Is No Single Amazon Ads CPM
Amazon Ads operates across a wide mix of inventory, formats, and markets, which means CPMs can vary widely.
Pricing differences are influenced by:
- Whether the campaign runs on Amazon.com or off Amazon
- The ad format (including Amazon display ads, native, video, Streaming TV / CTV)
- The country or region being targeted
- Seasonality and major retail events
- Audience targeting and data signals
- Competition from other advertisers
- Campaign objectives and optimization strategy
Asking for one average Amazon Ads CPM is similar to asking for the average cost of TV advertising without specifying the country, channel, audience, or format. Without that context, the number alone doesn’t provide meaningful guidance.
On Amazon.com vs Off Amazon
One of the most important distinctions in Amazon advertising is where the ads are running.
On Amazon.com refers to placements within Amazon-owned environments. These include product detail pages, search results, and other areas where users are actively browsing, comparing products, and making purchase decisions, often interacting with formats such as sponsored products and sponsored brands. These environments typically sit very close to the point of purchase and carry strong commercial intent.
Off Amazon, on the other hand, refers to inventory accessed through Amazon DSP across third-party websites, mobile apps, and video environments. These placements extend beyond Amazon-owned properties and allow advertisers to reach audiences earlier in the decision-making journey or re-engage them outside of the platform.
The key difference is strategic:
- On Amazon is often focused on capturing existing shopping intent
- Off Amazon is often used to build awareness, influence consideration, or retarget users
Because these environments serve different roles in the funnel, CPM comparisons between them are not always directly comparable. What may appear as a higher or lower CPM often reflects differences in intent, context, and campaign purpose rather than inefficiency.
Our Experience with Amazon DSP Adds Important Context
Having worked with Amazon DSP for many years, we have seen firsthand how much CPMs can move depending on whether a campaign is running on Amazon-owned inventory or offsite, what format is being used, and how competitive the market is at that point in time.
In practice, pricing is rarely static. It shifts based on a combination of factors, including format, geography, seasonality, audience strategy, campaign objective, and overall total ad spend in the market. A display campaign in one market may behave very differently from a video campaign in another, just as CPMs during peak retail periods can look very different from quieter trading months.
This is where real-world campaign management becomes important. Looking at CPMs in isolation, or trying to apply a single average across all scenarios, can be misleading. Two campaigns can have very different CPMs and still both be effective, depending on what they are designed to achieve and how advertisers pay for different types of inventory.
For advertisers, the key is to understand context rather than chase a single benchmark. Evaluating CPM alongside inventory type, audience quality, and campaign goals leads to more informed decisions and, ultimately, better performance.
Ad Format Changes the CPM Conversation
Another key factor that shapes Amazon Ads CPMs is the ad format. Different formats deliver different types of value, which naturally leads to different pricing expectations. For example:
- Display ads often focus on reach and visibility
- Native formats integrate more seamlessly into content environments
- Video ads provide stronger storytelling opportunities
- Streaming TV / CTV delivers large-screen, high-impact experiences
Each format comes with its own:
- Creative capabilities
- Attention levels
- Placement quality
- Role within the campaign strategy
Because of these differences, it does not make sense to compare all formats under a single CPM benchmark. Instead, CPM should be evaluated in relation to what each format is designed to achieve.
Display Ads Usually Sit in a Different CPM Range from Video
Display advertising is often used to drive scale, support retargeting, and maintain product visibility across a wide audience. These placements can be effective for:
- Maintaining presence across the funnel
- Reinforcing brand awareness
- Supporting performance campaigns
Video, however, plays a different role. It typically offers:
- More engaging storytelling
- Higher visual impact
- Stronger attention and recall
Because of this, video inventory, including formats across Prime Video and other streaming environments, often operates within a different CPM range compared to standard display. The difference is not just about cost; it reflects the level of engagement and the role video plays within the broader campaign.
Native Ads and Streaming TV Add More Variation
Native advertising introduces another layer of variation in how CPMs are shaped. Unlike standard banner placements, native units are designed to align with the look and feel of the surrounding content. This more integrated approach can influence how users engage with the ad, often making it feel less disruptive and more contextually relevant within the environment.
Because of this, native ads can behave differently from traditional display formats, both in terms of user interaction and overall campaign performance. As a result, their CPM profile should be evaluated based on how they fit within the user experience, not just how they compare to standard placements.
Streaming TV and Connected TV (CTV) add further complexity to the CPM conversation. These formats typically sit within a more premium pricing tier due to the nature of the environment in which ads are delivered. Larger screen formats, high-quality content, and household-level reach all contribute to a different level of attention and engagement compared to other digital formats.
In addition, streaming TV environments are often associated with stronger brand storytelling and higher-impact creative, which can further influence pricing expectations.
Taken together, these factors reinforce an important point: CPMs vary not only based on where an ad runs, but also on how the message is delivered. Different formats create different experiences, and those differences play a key role in how pricing should be understood and evaluated.
Prime Day, Black Friday, and Cyber Monday Push CPMs Higher
Seasonality plays a major role in Amazon Ads pricing. During key retail periods such as Prime Day, Black Friday, and Cyber Monday, CPMs often increase significantly. This happens because:
- More advertisers enter the market
- Budgets increase across categories
- Competition intensifies
- High-intent audiences become more valuable
- Premium placements are in greater demand
An Amazon Ads CPM in a quieter trading month may look very different from a CPM during Prime Day week or the Black Friday and Cyber Monday period. These fluctuations are a normal part of the marketplace and should be factored into campaign planning.
Country Matters More Than Many Advertisers Realise
Geography is another important variable. Amazon Ads CPMs can differ across markets, such as:
- United States
- Canada
- United Kingdom
- Australia
These differences are driven by:
- Levels of advertiser competition
- Depth of available inventory
- Market maturity
- Audience scale
- Category demand
- Seasonal buying behaviors
A CPM benchmark observed in the United States should not automatically be used as a reference point for Canada, the UK, or Australia. Each market operates differently, and pricing reflects those dynamics.
Campaign Objective Also Shapes CPM Expectations
CPM should always be evaluated in the context of campaign goals. Different objectives naturally lead to different pricing expectations:
- Awareness campaigns may prioritize reach and visibility
- Retargeting campaigns focus on high-intent audiences
- Conversion campaigns may justify higher CPMs if users are close to purchase
- Prospecting campaigns may prioritize scale over precision
In this sense, CPM is not just a cost metric; it is part of a broader strategy. What matters is whether the pricing aligns with the campaign’s intended outcome.
Amazon Marketing Cloud Adds Another Layer to the Conversation
For more advanced advertisers, tools like Amazon Marketing Cloud add further depth to how CPM is evaluated. Rather than looking at CPM in isolation, advertisers can analyze:
- Audience behavior across touchpoints
- Media overlap between campaigns
- Path-to-purchase insights
- Incremental impact of different formats
This shifts the conversation from simply what was paid for impressions to what those impressions actually contributed to overall performance. As a result, CPM becomes just one part of a much broader measurement framework.
Why a Higher CPM Is Not Always a Problem
It is easy to assume that a lower CPM is always better. In reality, that is not always the case. A higher CPM can still represent strong value if it delivers better audience quality, stronger engagement, and improved outcomes relative to the overall Amazon ads cost.
- Access to a more relevant audience
- Placement within a higher-quality environment
- Stronger attention and engagement
- Better downstream performance
- Improved retail outcomes
Focusing only on cost without considering context can lead to misleading conclusions. Effective campaigns are built on value, not just price.
A Better Way to Evaluate Amazon Ads CPM
Rather than focusing on “what is the average CPM?”, a more effective approach is to evaluate Amazon Ads pricing in context. CPM on its own only tells part of the story, and without understanding the variables behind it, it can easily be misinterpreted.
A more practical way to assess CPM is to step back and consider the full picture:
- Is the campaign running on Amazon.com or off Amazon?
- What ad format is being bought?
- What country or market is being targeted?
- Is the campaign running during Prime Day, Black Friday, or Cyber Monday?
- What is the campaign objective?
- Does the CPM make sense for the audience and the environment?
When these factors are taken into account, CPM becomes far more meaningful. Instead of searching for a single benchmark, advertisers can make more informed decisions by evaluating how pricing aligns with inventory type, format, geography, seasonality, and campaign goals, leading to a clearer understanding of performance and more effective use of budget.
