In the world of Amazon advertising, there are numerous metrics for the purpose of analyzing your performance to choose from. Unfortunately, it is often challenging to define which one is the most relevant for you. Luckily, a universal metric exists — the click-through rate, also known as simply CTR.
Why is CTR important?
Firstly, we need to understand what CTR is. The сlick-through rate is the ratio between the number of people who clicked the ad and the number of people who saw it. Your advertising campaigns will show different CTR, and you should use it to evaluate whether your campaigns are a success or a failure.
Higher CTR translates to more interest in your ad, thus, increasing the chances of increasing your product’s sales. In addition, CTR may implicitly give information about the strength of your listing.
Targeting CTR is vital when you consider lowering cost per click and, therefore, increasing your profit.
Lower CTR indicates that your product can’t withstand the competition very well or that the product is offered to the wrong customer.
But how to improve it? Search terms with less than 0.5% CTR should be excluded from your Amazon PPC campaign to ensure ad relevance and cut costs.
You can also exclude specific keywords from your ad campaign. For example, you sell car chargers. But you also receive clicks from people searching for wall car chargers. Those clicks don’t contribute to your sales and, as such, are a waste of money.
CTR vs CR: what’s the difference?
However, there is a complementary metric to CTR, namely, the conversion rate of CR. CTR concerns clicks primarily, while CR is all about the clicks’ contribution to the sales you get.
Cheaper listings tend to have higher CTR due to their more competitive price, while wholesale offers usually have higher CR since they provide more value.
Attempting to increase your Amazon CTR may likewise increase your CR — the more clicks there are, the higher the possibility of selling your product. The latter metric will show you the impact your ads have on your business. Consequently, we recommend you use these metrics in conjunction to achieve optimal performance.
What factors influence CTR?
The simplest answer to this question is: whatever attracts shoppers to your listing the most, be it images, lower prices, coupons, ad placement, or other factors mentioned below.
Images are, without a doubt, a pivotal factor in increasing the CTR of your Amazon ad campaigns. Therefore, the first image should highlight all the product’s unique features, its advantages, or any relevant additional information so that the buyers don’t bother you with excess questions.
Given that shoppers subjectively perceive value, better-looking pictures highly correlate with how “professional” the seller is perceived and, as a result, improve your brand’s image.
Quality pictures also contribute to the general willingness of the shopper to view your listing, which, you guessed it, may lead to increased sales.
Title and Text
The title and text of your listing are no less important factors impacting the CTR. A combination of proper keywords usage and the inclusion of the language your target audience speaks represents the perfect title & description.
Do your keyword research properly; seek narrower words that accurately describe your product. If possible, more generic keywords should be avoided since they give fewer clicks and will show subpar results compared to other keywords. Also, be mindful of the negative keywords you may or may not need to include in your campaign.
Also, study your audience either through reviews on your listings or reviews on your competitors’ listings. Research what language they tend to use and appeal to that. In this manner, you will create a unique bond between your product and the shoppers. They value such an approach greatly.
Number of reviews
Social interaction plays a huge role on Amazon. Buyers might not yet know about your product or brand, but people, the social creatures we are, typically trust other people’s judgment. As a result, listings with 100 reviews sell more than listings with 5 or 10. That’s how human psychology works.
Though lately, incentivized reviews have been banned on Amazon, and, as a result, the number of potential review authors has plummeted. So, now it’s as important as ever to launch high-CTR campaigns attracting quality reviewers. This represents the most straightforward way of competing with the top listings.
To increase the number of reviews, you should launch a high-conversion campaign, employ sponsored ads or attract more external traffic.
FBA vs FBM
Extra shipping fees and delivery time often scare potential customers. They wish to get their product asap and for free (e.g. via Amazon Prime).
If you are a part of Fulfilled by Merchant, aka FBM seller, and are ineligible for Amazon Prime, you lose thousands of potential shoppers. Free and fast shipping tips the scales between otherwise similar listings.
Moreover, Amazon Prime users statistically spend more money shopping on Amazon — up to twice the normal spending. Therefore, it would be a loss not to target such an audience.
Price is yet another factor that can majorly influence your Amazon CTR, both positively and negatively. Offer competitive prices, as they are more likely to convert a click into a purchase.
If your listing is for some reason more expensive than the competitors’, you should highlight your product’s defining characteristics to incline shoppers to consider choosing you over others.
Too low of a price can, on the other hand, seem suspicious at best. Your listing may be perceived as cheap-ish. Strive for the middle ground by running split tests to see what best suits your product.
Ad placement is yet another critical factor influencing the CTR. The average CTR figure on Amazon is approximately 0,36%. Most of those are product pages. Results vary depending on the type of page.
For product pages, the optimal result is 0.2% – 0.4%, for other search items — 0.5% – 1%, whereas the top listings can reach 2%-5% CTR. You should also keep in mind that the CTR of your campaigns corresponds directly to the ad placement in the search results. We advise you to focus on relevant keywords and bid optimization to ensure favorable ad positioning.
The final factor for improving your Amazon CTR is “decorating” your listing with badges. As difficult as they might be, they’re definitely worthwhile. Here we would like to give you several tips on how to attain some of these sweet-sweet “medals.”
Best Seller. It’s easier to earn it in a narrower category. Run additional ads or give off coupons to facilitate receiving this badge.
Amazon’s choice. To earn this badge, you ought to have competitive prices, decent keywords, good CVR on chosen terms, a sizeable number of positive reviews, and be applicable for Amazon Prime. It is worth the hustle.
Offering discounts via various means attracts shoppers like honey. For example, giving off coupons or offering a Today’s deal is a sure way to incentify potential customers to definitely prefer purchasing your product over others.
Why could high CTR be bad?
Now you’re knowledgeable enough to reach a high Amazon CTR. But why would you? Is it always necessary to achieve the highest possible CTR? Fun fact: no. You can achieve higher CTR for keywords that don’t really contribute that well to your overall success, therefore, being a waste of time and money.
Using “useless” keywords is unacceptable. To combat that, employ negative keywords to get the “proper” high CTR and not the random mess you might get should you thread carelessly through the process of preparing your PPC campaign. So, we recommend you be wary of deceptively high CTR and strive for CTR that corresponds well to CR.
Congratulations, future Amazon heroes! With this knowledge, you can further analyze your PPC campaigns and find possibilities for development. Utilizing it, you will have more tools at your disposal to overcome the difficulties of conducting real-life business.
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