As an Amazon seller, you’re operating on one of the world’s largest online marketplaces. With the right keywords, customers around the globe can see your products. However, you’re not the only seller on this platform. That’s why you need to understand the meaning of CTR on Amazon. Amazon CTR is a key metric to help you gauge the success of your advertising campaigns.
In this article, you’ll learn everything there is to know about CTR on Amazon and how you can use this metric to maximize your sales.
What is Click-Through Rate (CTR) on Amazon?
In Amazon advertising, click-through rate is defined as the ratio between the clicks on your sponsored ads versus the number of shoppers who viewed it.
Generally, click-through rate can be expressed as a mathematical formula as shown below:
CTR= (Clicks/Impressions) *100
For example, if you have 20 clicks per 60 impressions on a sponsored brands ad, your click-through rate will be;
CTR= (20/60) *100=33.3%
Therefore, your CTR is 33.3%
Amazon sellers who work on enhancing their click-through rates are likely to realize higher sales. Remember, a higher Amazon pay-per-click CTR can result in a higher conversion rate.
As you can see, a high Amazon CTR results in more traffic to a seller’s listings. As a result, there are additional selling opportunities. Other metrics about the seller’s products, such as value and price, can increase Amazon’s click-through rate.
What is a Good CTR for Amazon Ads?
From the above calculations, it is evident that Amazon sellers should be targeting a higher click-through rate. The higher the CTR, the higher the sales. On the other hand, a lower CTR means a business is struggling to attract customers. Consistently low CTR can lead to the collapse of a company.
On average, Amazon sellers get a click-through rate of 0.3%. However, strategic advertising and unique product listings can lead to an Amazon CTR of 0.5%. Leading online sellers have a CTR of 0.4%, which is considered decent. Noteworthy, a well-crafted Amazon PPC strategy can lead to a higher CTR.
However, some sellers record a CTR of 0.3% or even lower. As a result, such organizations struggle to attract traffic. In most cases, lower CTR indicates that the ads are not attractive or customers are not interested.
What is the Importance of Click-Through Rate?
As a new Amazon seller, this is a metric you should not ignore. Paying attention to your CTR can help you understand critical aspects of your ads campaign. Some of the reasons you should pay attention to Amazon CTR include:
Target the Right Audience
Your Amazon CTR shows how frequently potential customers click on your ads. A higher CTR indicates that you’re targeting the right audience. However, if you have a lower CTR, you’re not targeting the right audience. Therefore, you’ve to fine-tune your messaging to achieve spontaneous clicking by the users.
Provide Clear Messaging
In Amazon advertising, you must focus on your message. The goal is to provide clear messaging that your customers will understand. Amazon CTR is an effective tool that helps you know whether your message is clear. You’ll have a higher CTR if your message delivers the correct information.
Predict Offline Consumer Behaviors
Generally, the click-through rate measures online activities. However, it is essential to note a significant relationship between offline and online consumer behavior. For example, a higher CTR on specific products indicates that such products are also in higher demand on offline platforms. This is an opportunity you can use to enhance your offline business operations.
Increased Visibility on Social Networks
In social media advertising, a higher click-through rate represents higher user engagement. So, if you advertise your Amazon products on social platforms, pay attention to CTR. The higher the clicks, the higher the visibility. Enhanced visibility means that you’ll have additional traffic targeting your products.
Increased Conversion Rate
As an Amazon seller, the most important metric is the conversion rate. You want as many site visitors to click and buy your products. Therefore, keeping a close eye on the click-through rate can positively impact your sales. Noteworthy, a higher CTR leads to an increased conversion rate.
What Factors Impact Click-Through Rate?
Every seller wants to have a good CTR for Amazon Ads. However, this is not always the case as some aspects affect such Ads. Therefore, to improve your CTR, you need to know what affects it.
Generally, a low CTR is not only caused by poor product offering but also the ad position. Online shoppers are known to click on ads that rank higher on the web pages. Therefore, if your ads are on the bottom of the page, you’ll have poorer click-through rates. It would help to place your ads on the top of the page.
Ad relevance plays a significant role in your CTR. Customers will always click on ads that are highly related to what they are looking for. This will have a positive impact on CTR. Therefore, you should focus on enhancing the relevance of your ad to attract a higher CTR. You can achieve this by using relevant keywords on your ads and avoiding generic listings.
Prospective shoppers click on your product listings when they are intending to make a purchase or explore options. An optimized product listing consists of several elements including images, product video, product title, A+ content, feature bullets, and ratings.
Amazon has set certain best practices and guidelines for well-optimized product listings. For example, the optimal number and quality of product images. Make sure your product detail page adheres to these best practices.
*Trellis’ Top Tip: If you’re wondering how to optimize your product listings to convert shoppers rather than make them go back to the search results page, we have the perfect tool for you.
Check out the free Amazon Listing Quality Checker & Analyzer by Trellis. Simply plug in your ASIN and choose a marketplace and our tool will generate a listing quality score for you in real-time with actionable recommendations to improve your product page.
How to Improve Click-Through Rate on Amazon?
As an Amazon seller, you must always focus on improving your CTR. Remember, improving your CTR increases conversion rates, resulting in more profits. But how do you improve your click-through rate on Amazon?
1. Follow Product Image Guidelines
Product image constitutes the most important contributor to your CTR. It is the only thing that customers can see. Therefore, you need to optimize your photos to look professional and trustworthy at first glance. Make sure that your images emphasize the critical details about the product. Focus on quality images that give a 3-dimensional view.
2. Focus on the Right Keywords
You can use multiple keywords for a single product to attract customers. However, not all keywords bring more traffic (high CTR). Amazon lets you know the most appropriate search terms that customers are using. These are the keywords you should optimize to increase your click-through rate. Also, you need to remove less relevant search terms to reduce cost.
3. Optimize Product Title
Besides product images, the product title is the first text buyers will see. Therefore, you need to incorporate the primary keyword in the title. Also, ensure that you’ve integrated the main features of your product here. Descriptive information is critical as it informs buyers about the product leading to more traffic and, therefore, a high click-through rate.
4. Effectively Price Products
Price determines whether buyers will click your product. Lower prices will create impressions of low quality. Alternatively, significantly higher prices will scare potential buyers. Focus product pricing that is reasonable to customers but also profitable. It would help if you focused on increasing CTR through fair prices while generating sufficient revenues for your business.
5. Encourage Positive Reviews
In online platforms, buyers trust buyers. Therefore, you should always encourage your customers to provide positive reviews. Initially, you can incur high advertising costs by offering free products. This is a strategic method of getting positive reviews on your products.
6. Become a Best-Seller
Getting a best-seller badge is social proof that you’re delivering quality products to your customers. Also, this is a sign that you’re the leader in your category. Nevertheless, achieving a best-seller badge is always a challenge in the competitive Amazon market. However, concentrating on a less competitive niche can help you quickly achieve the best-seller badge.
Improve Your Amazon CTR Today
As you already know, Amazon advertising is a complex undertaking. With millions of sellers competing in your market, you’ll struggle to get enough sales. But, despite that, focusing on your click-through rate can push you on the right trajectory.
In need of more information to improve your Amazon advertising? Reach out to our team of seasoned Amazon advertising mentors and book a demo of Trellis – the demand generation platform built for eCommerce brands.