Where Amazon Advertising Stands Heading Into Q4

As Amazon advertisers prepare for the busiest shopping period of the year, Q3 offers a clearer picture of how the advertising landscape is evolving. With Prime Day moving to June, the quarter became an opportunity to see how performance settled after a major sales event, and where brands found growth without the same level of investment.

The results reveal an interesting shift. Traffic continued to grow, advertising costs eased across most markets, and returns improved in many regions. But the gains were uneven.

Podean's Global Amazon Media Report Q3 2026 is out now, and it takes a closer look at these trends across global marketplaces and what they mean for advertisers heading into Q4. Here's what stood out.

More clicks, without more spending

Sponsored Ads clicks reached an all-time high in Q3, even as spend dipped slightly from Q2's record. Advertisers generated more traffic with less investment, supported by CPC declines averaging approximately 12% across markets. Amazon DSP also reached new highs in clicks and spend, while CPC fell another 4%.

It's an encouraging sign for advertisers, but one that comes with an important distinction that cheaper traffic doesn't necessarily mean stronger returns.

Lower costs, different outcomes

Mexico is a good example. With CPC at just 29% of U.S. levels, it remains one of the most affordable markets for reaching shoppers. However, it also has the lowest conversion rate, which highlights an opportunity for advertisers heading into Q4. The challenge isn't just attracting more traffic, but turning those clicks into sales.

Australia saw the steepest drop in click costs of any market, but its sales per click fell almost as much, so returns barely moved. Its conversion rate, the highest of any market in Q2, also fell, and the UK reclaimed the top spot.

Canada showed a different trend. Despite softer ROAS year over year, its conversion rate rose 29% compared with Q2, making it one of the quarter's most improved markets.

These contrasting results highlight why advertisers need to look beyond traffic costs and focus on the value each click delivers. With competition expected to intensify during the holiday season, converting traffic into sales will be just as important as acquiring it efficiently.

Global markets are moving in different directions

Beyond traffic costs and conversion, year-over-year ROAS trends reveal another layer of differences across markets. While some advertisers achieved stronger returns through increased investment, others saw better results after reducing spend

Australia stood out with higher investment and significantly improved ROAS. The U.S., UK, and Germany followed a similar pattern, with both spend and returns on the rise. Italy and Saudi Arabia achieved even stronger ROAS gains despite reducing investment. In contrast, Mexico and Canada spent more but saw returns decline, while Brazil's ROAS fell despite relatively flat spending.

For global advertisers, these differences reinforce why a one-size-fits-all approach is increasingly difficult to justify. Each market needs its own performance targets and budget strategy, with regular assessments of whether additional investment continues to deliver returns.

What Q3 tells us about Q4

With Prime Big Deal Days behind us and Black Friday, Cyber Monday, and the holiday season ahead, competition for shopper attention is set to intensify.

Q3's results offer an important lesson heading into this period. Higher investment doesn't always deliver stronger returns, and lower advertising costs don't automatically translate into more sales. As budgets increase around major shopping events, brands will need to pay closer attention to where additional investment can drive growth and where efficiency is beginning to weaken.

The brands best positioned for Q4 won't necessarily be those spending the most, but those making the most informed decisions about where and how to invest.

Get the full report

The complete report covers market-by-market benchmarks, category trends, and the quarter's major Amazon Ads news, including Amazon Ads Agent, Branded Conversations in Alexa for Shopping, and a new pilot bringing Amazon campaigns to ChatGPT.

Want help building your Q4 plan around these findings? Our team is ready to talk through where to invest next.

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