E-Commerce Ad Benchmarks 2026: ROAS, CPA, and Conversion Rates

Every e-commerce merchant asks the same question: "Is my ad performance good?" Without context, a 3x ROAS could be excellent or terrible — it depends on your industry, product category, and what other merchants are achieving.

Benchmarks give you that context. They help you understand where you stand relative to your peers, identify areas for improvement, and set realistic targets for optimization. They're not a one-size-fits-all standard, but they are an essential reference point.

The data below is compiled from industry reports published in late 2025 and early 2026, including data from WordStream, Databox, Shopify, and Statista. We've focused on metrics most relevant to Shopify merchants and e-commerce brands spending $1,000–$50,000/month on digital advertising.

Google remains the highest-intent advertising platform for e-commerce. Here are the key benchmarks for 2026:

Google Shopping

• Average CPC: $1.16 (up from $0.66 in 2022, reflecting increased competition)
• Average CTR: 4.2% (higher than search due to visual product listings)
• Average Conversion Rate: 2.81%
• Average ROAS: 4.2x (median); 7x+ for top-quartile performers
• Average CPA: $38.40

Google Search (Non-Branded)

• Average CPC: $2.69
• Average CTR: 2.7%
• Average Conversion Rate: 1.91%
• Average ROAS: 2.8x (lower than Shopping due to higher CPCs and lower conversion rates)
• Average CPA: $56.11

Performance Max

• Average ROAS: 3.5x–5x (varies widely based on feed quality and creative assets)
• Adoption Rate: Over 80% of e-commerce Google advertisers now use Performance Max

The trend in Google Ads is clear: CPCs continue to rise (up approximately 10% year-over-year), but conversion rates have stabilized. Merchants who win on Google are those with optimized product feeds, competitive pricing, and strong landing page experiences.

Facebook remains the dominant social advertising platform for e-commerce, despite the ongoing effects of iOS privacy changes. Here are the current benchmarks:

• Average CPM: $11.54 (cost per 1,000 impressions)
• Average CPC: $1.72
• Average CTR: 1.49%
• Average Conversion Rate: 1.82%
• Average ROAS: 2.5x (median); 4.5x+ for top-quartile performers
• Average CPA: $43.80

Key trends for 2026:

• Advantage+ Shopping Campaigns (ASC): Meta's AI-driven campaign type is now the default recommendation. Early data shows ASC delivering 15–25% better ROAS than manual campaign structures.
• Video-first creative: Reels placements now account for over 40% of Facebook ad impressions. Merchants without video creative are at a significant disadvantage.
• Broader targeting works: With improved AI targeting, many advertisers are seeing better results with broad audiences (age + gender + country) than with detailed interest targeting.
• Rising CPMs: CPMs have increased approximately 8% year-over-year, driven by more advertisers competing for inventory.

The gap between average and top-performing advertisers on Facebook is widening. Creative quality is now the single biggest lever — stores with strong video content and fast creative refresh cycles consistently outperform.

TikTok has emerged as a legitimate e-commerce advertising platform, though it's still maturing compared to Google and Facebook. Here are the current benchmarks:

• Average CPM: $9.50 (lower than Facebook, reflecting less competition)
• Average CPC: $1.30
• Average CTR: 1.02%
• Average Conversion Rate: 1.1%
• Average ROAS: 1.8x (median); 3.5x+ for top performers
• Average CPA: $52.00

Key trends for 2026:

• TikTok Shop integration: In-app purchasing is reducing the friction between ad engagement and conversion, improving ROAS for merchants who activate it.
• Creator-driven content: Ads that feel like organic TikTok content (UGC-style, raw, personality-driven) consistently outperform polished brand creative by 2–3x on CTR.
• Demographic expansion: While TikTok's core audience skews younger (18–34), the 35–54 demographic is the fastest-growing segment, expanding the platform's viability for more product categories.

TikTok's lower ROAS benchmarks don't necessarily mean it's a worse platform — it reflects TikTok's strength as a top-of-funnel discovery channel. Many brands use TikTok for awareness and then capture conversions through Google or direct traffic later.

Instagram ads are managed through the Meta platform, so many metrics overlap with Facebook. However, Instagram-specific placements have distinct performance characteristics:

• Average CPM: $13.20 (higher than Facebook feed due to premium placements)
• Average CPC: $1.86
• Average CTR: 0.98% (lower than Facebook — users are more passive on Instagram)
• Average Conversion Rate: 1.45%
• Average ROAS: 2.2x (median); 4x+ for top performers in fashion, beauty, and home)

Best-performing placements:

• Reels: Highest reach and lowest CPM. Best for awareness and upper-funnel engagement.
• Stories: High engagement rate, effective for limited-time offers and promotions.
• Feed: Best for conversion-focused campaigns with strong static images or short video.
• Shopping tags: Enable in-app product discovery. Particularly effective for fashion and lifestyle brands.

Instagram's strength is in visual commerce. Brands with high-quality lifestyle imagery and a strong aesthetic consistently outperform on the platform, especially in fashion, beauty, home décor, and food categories.

Benchmarks are a starting point, not a target. Here's how to apply them effectively:

• Identify your biggest gap: If your Facebook ROAS is 1.5x versus the 2.5x median, that's your biggest optimization opportunity. If your Google Shopping CPC is $2.50 versus the $1.16 average, your product feed or bidding strategy needs work.
• Set realistic targets: Don't aim for top-quartile performance immediately. If you're below the median, set the median as your first milestone. Incremental improvement is more sustainable.
• Compare within your category: A luxury jewelry brand and a $15 phone case brand will have very different benchmarks. Use industry-specific data when available.
• Track trends, not snapshots: A single month's data is noisy. Track your metrics over 90-day rolling periods to identify genuine performance trends versus normal fluctuation.

InsightIQ helps you contextualize your performance against these benchmarks automatically. Our dashboard highlights where your metrics fall relative to industry averages and provides AI-powered recommendations for closing the gap.

Remember: the goal isn't to match benchmarks — it's to continuously improve your own numbers. A store that improves from 2x to 3x ROAS has had a transformational impact on its profitability, regardless of where the "average" sits.