However familiar or unfamiliar you are with your Amazon Click-Through Rate (CTR)? Harnessing the advertising machine of the world’s largest online e-commerce stores is worth learning well.
Sponsoring an ad for your product on Amazon allows shoppers to see your product every time they search for an item related to yours, or something similar. Sponsored Ad campaigns can make all the difference between being barely noticed or a roaring success.
How you design your sponsored campaigns is critical, as unsuccessful ones can cost you money and result in poor sales if any. To help you understand whether your ads are doing the job or not, Amazon offers a number of metrics that analyze their effectiveness — the most fundamental of which is your Click-Through Rate (CTR).
Click-through Rate (CTR)
A product’s Click-Through Rate (CTR) is obtained by measuring its Clicks and Impressions. While the two metrics can reveal a lot of information, the ratio between them is what determines your true CTR.
The CTR ratio rates how many shoppers have clicked on your sponsored Ad versus the number of shoppers who have seen it. All Amazon promotions and keywords have their own CTR, which you can follow within the campaign’s management panel. Depending on the type of promotion or campaign you have, optimization strategies will vary.
In short, CTR formula looks like this:
CTR = Percentage of (Number of shoppers who have clicked your sponsored Ad / Number of shoppers who have seen it)
The scale of your CTR percentage can run from a lowly 0% (meaning your Ad generated no clicks), or run-up to a less-attainable 100% (meaning everyone who saw your ad clicked on it). With this easy scoring method, you can gauge how well your Ad is performing and whether you need to make any adjustments for improvement.
Improving your CTR
Now that you know the difference between a high and low CTR, what do you need to do to attract more clicks if your Ad isn’t performing as well as you’d hoped?
In this article, we have outlined the 4 definitive factors that are proven to effectively measure and optimize Ad traffic to sponsored products and improve Amazon click-through rate.
4 Factors to Improve Your CTR in Amazon
Working towards a higher CTR will make your products appear more relevant to shoppers and increase profits. By implementing the strategies below, you can start to experiment with various techniques to attract the attention of your target customers and compel them to click on your Ads.
Factor 1: Think ‘readability’ instead of keywords
Recently, Amazon’s keyword algorithm changed from being keyword-centric to performance-centric. Previously, keyword weightings were laid out in the following priorities:
- Title (Product Name)
- Search terms/generic keywords
- Bullet points
What this meant is that products with high-ranking keywords in their titles had a better chance of getting noticed — but now, this is no longer required for organic ranking.
Instead, Amazon now wants its sellers to focus on product conversion-optimization (such as CTR, conversions, etc) and go further into product performance by identifying keyword-specific metrics. Rather than sprinkling keywords everywhere, the idea here is to really work out what specific keywords can bring about the metrics you want to convert your leads. Here are a couple of ways you can do this:
Narrow Your Focus
When designing your sponsored Ad campaigns, adding relevant keywords for your products is important. What will bring you further results however, is going deeper on narrowly-focused keywords to match your Ads to shoppers more precisely and improve the CTR.
Perhaps your go-to keywords are those that have high impressions, but beware, this doesn’t mean they have a high click-through rate. More often than not, choosing relevant keywords only can be too generic and lost in a sea of similarity, i.e. not specifically targeted to a suitable audience. When shooting towards increasing your CTR, put a pause on the generic keywords and search deeper for those that will drive more valuable traffic to your products.
Harvest Negative Keywords
What are negative keywords and how exactly can they help minimize irrelevant traffic to your items and boost your CTR?
Negative keywords are keywords that have low click-through rates and high impressions.
Adding negative keywords ensures your sponsored Ads aren’t triggered by irrelevant customer keyword searches that can often be tied to your product unintentionally. This streamlines traffic so that only relevant keywords make the cut, improving the effectiveness of your CTR.
Every one to three months, reevaluate your negative keywords so that they remain up-to-date in search trends.
Factor 2: Enhance headlines and images
Here’s where a few copy-writing and branding tips come into play.
When creating your sponsored products or brand Ads, bear in mind that it may take a few trials and errors before honing in on your optimum combination of copy and image. To get started, A/B test a couple of headlines — one with a simple call to action (CTA) and one that has a more descriptive headline. Trial both headlines for approximately two weeks and see which one gives you a higher CTR. Secondly, experiment with a variety of images to see which ones attract the most clicks. For example, a product pictured on a white background may be more effective than your brand’s logo.
Combining the right image and headline as well as incorporating CTAs and high-ranking keywords will make your product more compelling and engaging, leading to a stronger CTR.
Always ensure that you use high-quality product images. Provide a suitable title, brief but comprehensive bullets points and a detailed description pinpointing any intriguing benefits or features of your product.
Factor 3: Generate good reviews
Having enough reviews on your product pages is essential to gaining a reputable image and the trust of new shoppers. Once they have seen positive reviews on a product they’re interested in, they’ll be more likely to buy. Reviews are the online version of word-of-mouth recommendation and there’s nothing like the social proof of other shoppers in cementing a decision to purchase.
This is the reason why many sellers give away free samples or endure high initial costs of operation so that they can garner positive reviews and earn trust.
Addressing the state of your reviews is a key factor in generating sales. If your product page has many negative reviews, it has an extremely low chance of sales even with an optimized Ad. In an ideal setting, you’ll want to have a star rating of 4.5 and upwards — through pages with only 5-star reviews can sometimes be seen as suspicious.
Having a reasonable number of positive reviews can help you get a best-seller badge, which could enable your product to be the preferred choice in its category. This can also be optimized by choosing a less competitive category for your product so that it achieves a higher rank.
Factor 4: Entice with price
The psychology of setting prices is fascinating. Playing around with only a few cents could make a great impact on your CTR, as well as sales.
Changing your price isn’t about eating into your profit margins, but determining the exact number that entices a shopper to click on your product and make a purchase. A small change could make all the difference, for example, $0.95 might be better than $0.99, or $14.99 than $15.99.
Experiment with subtle price changes to find the optimum number that drives both clicks and sales.
A high CTR will optimize sales and reduce Ad Costs
Getting to grips with your click-through rates will give you the best feedback on your Amazon Ad performance and enable you to take the right measures in always keeping these metrics optimized. A high CTR can help increase your profits and even lower your Ad spend as you leave wasteful practices by the wayside. In turn, your products will likely become more relevant to shoppers and lead to an increase in conversions, making a direct impact on your business as a whole.