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Global ecommerce ad spend is projected to reach $271 billion in 2025.
Ecommerce brands increased digital ad budgets by 18% in 2024.
74% of ecommerce companies plan to increase ad spend again in 2025.
62% of total ecommerce ad budgets now go to performance marketing.
Ecommerce ad spend on social platforms grew 21% YoY in 2024.
48% of ecommerce brands say rising ad costs are their biggest challenge.
59% of ecommerce companies allocate over 30% of revenue to advertising.
31% of ecommerce brands spend over $100k/month on ads.
66% of brands say advertising is becoming less profitable without optimization.
71% of ecommerce ad spend is concentrated on just four platforms (Meta, Google, TikTok, Amazon).
The average ecommerce ROAS across platforms is 3.2x.
Top 10% of ecommerce advertisers achieve 8.4x ROAS.
Retargeting ads produce 5–10x higher ROAS than cold traffic.
Abandoned-cart retargeting ads boost revenue by 27% on average.
Lookalike audiences outperform interest audiences by 34%.
Video ads generate 42% higher ROAS than image ads.
63% of ecommerce brands say their ROAS decreased in the past 12 months.
Companies using AI optimization tools see 31% higher ROAS.
Post-purchase upsell ads increase average order value by 22%.
CBO (Campaign Budget Optimization) increases ROAS by 14% on average.
81% of shoppers discovered a product online through an ad.
54% of consumers say ads influence their final purchasing decision.
62% of shoppers prefer video ads over images.
48% of users purchase after seeing a product 2–3 times in ads.
79% of Gen Z expect personalized ads from ecommerce brands.
41% of users trust ecommerce ads more when they include UGC.
56% of shoppers abandon a purchase due to unexpected shipping costs.
64% of shoppers say ads help them find better deals.
70% of consumers revisit a website after retargeting ads.
44% of online shoppers made a purchase directly from a social media ad.
Facebook remains the #1 paid channel for ecommerce with 33% market share.
Instagram ad CPMs increased 19% in 2024.
Average ecommerce CPM on Meta: $12.40.
Average ecommerce CPC on Meta: $0.78.
58% of ecommerce brands run Advantage+ Shopping Campaigns.
ASC campaigns reduce CPA by 17% on average.
Meta video ads receive 52% more engagement than static ads.
Retargeting on Meta averages 7.1x ROAS.
72% of ecommerce DTC brands use Meta as their primary ad platform.
49% of Meta advertisers report iOS tracking still hurting performance.
TikTok ad spend for ecommerce grew 32% YoY in 2024.
TikTok has the highest average video watch-through rate: 22%.
TikTok ecommerce ads average 1.4x cheaper CPM than Meta.
TikTok UGC-style ads increase conversions by 38%.
TikTok Shop accounted for $17 billion in sales in 2024.
67% of users say TikTok inspired a purchase they didn’t plan.
TikTok ads featuring creators convert 3.2x better than brand-produced ads.
Average TikTok CPM: $8.10.
47% of ecommerce brands increased TikTok budgets in 2024.
TikTok TopView ads deliver 10%+ CTR for ecommerce.
Google Shopping ads drive 66% of all Google retail clicks.
Average ecommerce CPC on Google: $1.16.
Performance Max campaigns increase conversion value by 18%.
72% of ecommerce brands use PMax as their primary Google campaign type.
Google search ads have an average 4.9% CTR for ecommerce.
Retargeting display ads deliver 3x cheaper CPAs than cold campaigns.
82% of online retail sales involve a Google search at some point.
Branded search terms generate 4–12x ROAS on average.
YouTube ads increase top-of-funnel conversions by 27%.
Google dynamic remarketing ads boost conversions by 31%.
Amazon ads grew 24% YoY in 2024.
Amazon PPC now represents 14% of global ecommerce ad spend.
Sponsored Products account for 72% of Amazon ad revenue.
Amazon advertisers see an average 4.1x ROAS.
53% of Amazon sellers increased ads due to rising competition.
34% of Amazon sellers spend over $10k/month on ads.
Amazon video ads convert 20% higher than static placements.
61% of product discovery on Amazon happens through ads.
The average Amazon CPC rose to $0.89 in 2024.
22% of brands rely on Amazon as their primary revenue channel.
Email revenue driven by ads increased 15% in 2024.
SMS campaigns triggered by ads lift total revenue by 19%.
Omnichannel retargeting increases conversions by 23%.
Combining email + ads improves repeat purchases by 33%.
54% of ecommerce brands use automated ad flows tied to email events.
67% of shoppers engage with ads differently across devices.
Cross-device advertising increases ROAS by 29%.
Adding push notifications to ads increases customer return rate by 12%.
28% of purchases occur within 24 hours of receiving an email from an ad-triggered event.
AOV increases 18% when email is used alongside PPC ads.
Ads with customer reviews convert 38% higher.
Short-form video (6–15s) performs 41% better than long-form.
Product demos outperform lifestyle ads by 21%.
Ads with captions increase engagement by 28%.
UGC ads reduce CPA by 23% on average.
Mobile-optimized ads get 56% more conversions.
Landing pages with video improve conversions by 34%.
Ads with a clear CTA boost CTR by 19%.
Ecommerce brands using A/B testing increase ROAS by 28%.
Full-funnel ad strategies increase total revenue by 32%.
82% of ecommerce businesses worry about rising CPMs.
69% say creative fatigue happens faster than in previous years.
74% believe AI-generated creatives will dominate by 2026.
63% of brands plan to diversify away from Meta.
55% struggle with attribution accuracy.
49% say profitability is declining despite higher sales.
78% of brands now use automated bid strategies.
46% plan to increase influencer ad spend.
64% plan to invest in first-party data and retargeting.
92% of ecommerce brands say paid ads are essential for growth in 2025.
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Bill Nash is the CMO of Marketing LTB with over a decade of experience, he has driven growth for Fortune 500 companies and startups through data-driven campaigns and advanced marketing technologies. He has written over 400 pieces of content about marketing, covering topics like marketing tips, guides, AI in advertising, advanced PPC strategies, conversion optimization, and others.