What is a good CTR rate?
Anything around 0.5% and above can be considered as a good CTR rate. CTR rates below 0.3% are very bad and require a lot of attention. However a well refined and targeted campaign on Amazon can achieve 2-3% CTR or above.
What are the causes of a low CTR rate? How to improve the CTR rate?
Low CTR can possibly be due to two major reasons
- The Ad position
- Irrelevant Ads
The most important factor affecting your CTR rate is undoubtedly your ad position
Most people click on the ads on the top of the page whereas your ad lies in the bottom, this could be a major reason affecting your Click through rates.
The different AD types in Amazon
Sponsored products ads are keyword targeted cost per click search ads that appear below the search results, on the right-hand side of the search results page and on product detail pages (sponsored products related to this item section).
Headline search ads are keyword targeted cost per click search ads that appear at the top of the 1st page of search results on desktop and mobile.
Product display ads are product or interest targeted cost per click ads that appear on the related product details page.
When there are more than a product that is relevant for a search term and can be shortlisted for an ad, you compete for the search position.
To improve your ad rank position, you could do two things
- Increase the Ad bid
- Increase the quality factor
It is very easy to increase the bid for a keyword, however, increasing the bid amount is not a very ideal thing. It completely contradicts our aim of trying to decrease the PPC costs!
If a user searches for a particular product, he is more likely to click on a product that matches the intent of the search term entered by him. You’ll be able to identify negative keywords from campaigns for which your product is displayed by going through the search term reports over a period of time.
The CTR can also be influenced by a few other important things
The pricing point
A shopper is more drawn to click on a lower priced product that ranks next to your higher priced product. However, it is not a very profitable idea to reduce the listing price without considering the profit margins, sourcing price, etc just because your competitor has a lower price. In such cases, ensure that you implement other strategies to get the most clicks.
Eg. a higher number of product reviews; a shopper will surely click on a product that has more reviews than over a product with fewer reviews.
Promotional badges; badges like Amazon’s choice, Best Seller always catch the attention of shopper and they tend to click on a product that has badges. Try earning these badges.
The image quality
The quality of the image that appears on the product ad has a big share on the click through rate. Images that highlight the product and look appealing to a shopper always invites more clicks than a product ad with a poor image listing quality.
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