If your brand is struggling to scale your Amazon PPC efforts and move “up the funnel” into the awareness level, you will want to read this post.
vCPM, or Cost Per 1,000 Viewable Impressions, is an important metric and bidding strategy available to advertisers on Amazon’s advertising platform. Unlike traditional CPM (Cost Per 1,000 Impressions), vCPM focuses specifically on viewable impressions—ensuring that advertisers only pay when their ads are actually seen by potential customers.
The “v” in vCPM stands for “viewable,” which makes this metric distinctive from standard CPM. Amazon adheres to the Media Rating Council’s (MRC) definition of viewability which is counted as viewable when at least 50% is visible for at least 1 second. For video ads, viewability requires at least 50% of the ad to be visible while playing for at least 2 seconds.
The fundamental difference between vCPM and CPM lies in what you’re paying for:
For advertisers concerned with brand awareness and visibility, vCPM provides a more accurate measurement of actual ad exposure compared to traditional CPM.
Amazon offers vCPM bidding for Sponsored Display and Sponsored Brands campaigns. This pricing model is particularly suitable for campaigns focused on building brand awareness rather than driving immediate conversions.
When using vCPM on Amazon:
The formula for calculating vCPM is straightforward:
vCPM = (Total Ad Spend ÷ Number of Viewable Impressions) × 1,000For example, if you spent $500 on a campaign that generated 250,000 viewable impressions, your vCPM would be:
vCPM = ($500 ÷ 250,000) × 1,000 = $2This means you’re paying $2 for every 1,000 viewable impressions.
When implementing vCPM bidding on Amazon, consider these strategies:
vCPM bidding allows advertisers to:
The vCPM floor refers to the minimum bid amount required to participate in the auction for viewable impressions. Amazon sets different minimum vCPM bids based on country and ad type.
For example, in the US:
However, it’s important to note that bidding at the minimum level may not secure sufficient viewable impressions in competitive categories.
At PinWheel Performance Marketing, we recently helped a client leverage Pinterest Ads to drive traffic to Amazon as part of a comprehensive media strategy. The results revealed a significant cost efficiency:
This dramatic cost difference highlights a valuable opportunity for brands looking to build their funnel and drive qualified traffic to Amazon listings. Pinterest’s visual discovery platform offers a cost-effective way to reach potential customers before they enter the Amazon ecosystem.
What makes this strategy particularly appealing is Amazon’s Brand Referral Bonus program, which rewards brands for driving external traffic to their Amazon listings. On average, brands receive a 10% bonus across most product categories, creating additional value beyond the immediate sales impact.
Monitoring vCPM ensures that brands only pay for impressions that actually have the opportunity to impact consumers. On Amazon, this bidding strategy is valuable for brands focused on awareness and upper-funnel marketing activities.
As our experience at PinWheel Performance Marketing demonstrates, complementing Amazon advertising with external traffic from Pinterest can create significant cost efficiencies while still benefiting from Amazon’s attribution system and Brand Referral Bonus program.
Ready to explore how Pinterest can enhance your Amazon selling strategy? PinWheel Performance Marketing offers a free Pinterest Opportunity Report where we conduct targeted research to reveal the specific potential for your brand on Pinterest. This customized analysis shows you exactly how to leverage Pinterest’s lower CPM rates to drive qualified traffic to your Amazon listings, potentially saving thousands in advertising costs while increasing your visibility with interested shoppers. Contact us today to claim your free report and discover your brand’s untapped potential on Pinterest.