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What is A Good Amazon Clickthrough Rate and How to Improve It?

A thumbnail image for AMZ Pathfinder blog with the caption, "How to Boost Your Amazon Clickthrough Rate"

Understanding what a good Click Through Rate (CTR) on Amazon and how to improve it can be crucial in driving more traffic to your product listings and increasing conversions. 

From optimizing your product images and titles to leveraging Amazon badges and coupons, we’ll take a closer look at what constitutes a good Amazon CTR and explore some practical strategies that our own team of Amazon advertising experts have created for improving your CTR and maximizing your sales potential in one of the world’s largest online marketplaces. 

In this blog post, we’ll delve into the concept of Clickthrough Rate (CTR) on Amazon, why it’s crucial for your business, and how to improve it to maximize your sales potential.

What is A Good Amazon Clickthrough Rate and How to Improve It?

An illustration showing a hand clicking on an ad and money on the side depicting sales from ad clicks

What is Clickthrough Rate?

CTR is a key performance metric in the Amazon marketplace. It’s the ratio of shoppers who click on a product listing to the number of times it was displayed.

Expressed as a percentage, CTR measures the effectiveness of a product listing in attracting shoppers to click and view the product detail page. This applies whether a product is displayed organically or as a result of an advertisement.

For instance, if a product ad is shown 100 times and ten people click on it, the CTR would be 10%. The higher the CTR, the more visibility your product gets, and the more likely shoppers are to consider purchasing it.

Amazon values high CTRs as they signal a product listing’s potential to convert shoppers into buyers.

Amazon really cares about click through rate because it’s a signal that demonstrates how well a product listing is attracting shoppers to convert. If a product has a high CTR, it’s more likely to show up and be bumped upwards in the search results, making it be seen by more people, helping it sell.

READ MORE: Here’s how you can effectively calculate your Amazon PPC Advertising costs

What is a good Amazon Clickthrough Rate?

There’s no definitive answer to a “good” average CTR, as it can vary depending on the product category, competition, and other factors. What may be considered excellent for one product could be terrible for another.

It’s important to note that CTR is tracked in various places around the  Amazon ecosystem, not just ads. Amazon doesn’t provide data to assess the success of those places and gives us a window into only a few of them that we highlighted above. 

Nevertheless, optimizing for ad CTR can positively impact those other areas too.

Ultimately, the goal should be to have above-average CTR for your product category which sends a good signal to Amazon, and that leads to a high conversion rate (i.e., the percentage of shoppers who end up purchasing the product after clicking on the listing).

Based on data observed from several client accounts, our Amazon advertising experts here at AMZ Pathfinder have determined that a good CTR can be determined by several factors such as category, targeting option (manual or automatic), product life cycle, ad placement, ad relevance, bid amount, keyword match type, etc. 

Through client data, our team concluded that an average overall performance goes around 0.3%, which means 0.40% to 0.45% is considered very good CTR. Anything below 0.40% requires serious improvement. 

If your products have a good amount of traffic, then a CTR between 2% to 5% can be considered to work well.

An illustration showing a hand clicking on and ad and a calculator with the definition of clickthrough rate on its screen

How to improve your Amazon Clickthrough Rate

  • Earn Amazon badges

Amazon Seller badges are a mark of trust and reliability. They indicate that an Amazon seller has met specific performance requirements, which can significantly enhance customer confidence and increase the likelihood of clicks on their products. Understand the criteria for each badge and strive to meet these requirements.

  • Optimize your listings regularly

The Amazon marketplace is dynamic, with customer behavior and preferences constantly evolving. Regularly monitoring and adapting to these changes can improve your visibility in search results and attract more clicks. Make it a habit to re-evaluate your listings every few months to identify and address any issues impacting your CTR.

READ MORE: Here’s how you can maximize your listings’ visibility through backend keywords

  • Use relevant keywords

Keywords are the backbone of your Amazon SEO strategy. Including relevant keywords in your product titles, descriptions, and other listing elements can improve the relevance of your listings and increase their visibility to customers searching for related products. Use tools like Amazon’s search bar, Google’s Keyword Planner, or third-party keyword research tools to find the most valuable keywords for your products.

An image showing a discount on an eCommerce store

  • Offer discounts and coupons

Who doesn’t love a good deal? Discounts and coupons can make your products more attractive to online shoppers, especially if offered for a limited time or to a specific group of customers. However, remember to balance attracting customers with discounts and maintaining healthy profit margins.

  • Work hard for positive product reviews

Positive reviews are a powerful form of social proof. They can significantly increase the likelihood of a click, while negative reviews can hurt your product’s reputation and sales.

Encourage customers to leave reviews by providing excellent customer service and a high-quality product. Consider using tools like HighFive, a free app that helps you request more Amazon product reviews and feedback.

  • Improve your products’ pricing

Price is a key consideration for shoppers on Amazon. Offering products at a competitive price can increase the likelihood of a click and a purchase. Consider using dynamic pricing tools like Profasee, which helps Amazon sellers determine the best product pricing to maximize their profit.

  • Optimize for higher ranking on the Amazon SERPs

The higher your product ranks on the Amazon SERPs, the more visibility it gets and the higher the chances of getting clicked. Focus on optimizing your product listings for keywords and relevance, improving your listing quality and pricing, garnering positive customer reviews, and understanding Amazon’s algorithm.

An illustration of a person looking at product listings

What factors affect Amazon Clickthrough Rate?

  • Product Images

High-quality, visually appealing images that showcase the product’s features can significantly increase the chances of a shopper clicking on a product listing.

How to improve this: To make your product image stand out, A/B test your images. If your competitors have images with the products leaning toward the left, place your products on the right side of your product images to create a distinction that can pique your potential buyers’ interest.

  • Product Title

A clear, concise, and specific product title that includes relevant and popular keywords can make the product more appealing to shoppers, increasing the likelihood of a click. Clickbait titles can backfire if the product does not live up to the hype. 

How to improve this: Make sure that your product’s title accurately represents the product and its features to avoid inconsistencies and disappointed reviews from customers.

When creating your product title, ensure that it includes the core keywords but avoid overstuffing them (mentioning the same keyword 4-3 times repeatedly). Also, make sure it doesn’t sound robotic and poorly translated.

You can include core keywords, technical features, product benefits, product usage, user persona, and brand name. Finally, don’t forget to conduct A/B testing with your title to optimize its effectiveness. 

  • Product Reviews

Positive product reviews build social proof, trust, provide product feedback, improve search ranking, and impact the quantity and recency of even more reviews. They can increase the likelihood of a click, while negative reviews can hurt the product’s reputation and sales. 

How to improve this: To effectively manage your product reviews, reach out to each customer who leaves a good review with a thank-you note. For negative reviews, please take the opportunity to reach out to the customer and inquire about the cause of their dissatisfaction and address their concerns.

This will help develop a positive word-of-mouth promotion strategy that will make your brand more recognizable and increase the likelihood that customers will choose your product over others.

READ MORE: Don’t try these outdated strategies when advertising for Amazon FBA 

  • Fulfilled by Amazon (FBA)

Utilizing FBA can be an effective way to increase sales and CTR on Amazon. By providing Prime eligibility for your product listings, you give your customers faster shipping speeds, and in turn, it builds trust and increases the likelihood of winning the Buy Box.

These factors can make FBA products more appealing to customers and increase the possibility of a click and purchase.

How to improve this: Using Amazon FBA can help to improve your product’s visibility and overall rank in search results, making it more attractive to potential customers. This is due to the algorithm promoting FBA products over FBM products.

An image showing Amazon badges such as Top Brand, Amazon's Choice, Best Seller, #1 New Release, Climate Pledge Friendly badges

  • Amazon Badges

Amazon Badges, such as Best Seller, Amazon’s Choice, and New, can positively impact Amazon click through rate. These badges provide additional information to customers, helping them make purchasing decisions and increasing the likelihood of a click.

These promotional badges are awarded based on specific criteria, such as sales velocity and customer reviews, and can only be recovered if the product meets the requirements.

How to improve this: To earn Amazon Badges for your products, target the right keywords in your PPC ad campaigns to generate sufficient sales velocity and improve your conversion rates. Additionally, maintain a product rating between 4 and 5 during this process to maximize your chances of success.

  • Ad Type and Placement

Sponsored Products and Sponsored Brands ads are two types of ads that can be used to drive traffic to a product detail page on Amazon.

Sponsored Products ads typically appear on search results pages. They can help increase visibility, ad traffic, and CTR by placing the product in front of potential customers actively searching for related products.

Sponsored Brands ads can also increase CTR by featuring the product in a prominent banner at the top of the search results page, increasing the product’s visibility and credibility. These ads also allow advertisers to promote multiple products and build brand awareness.

How to improve this: Consider using Sponsored Ads with custom images or videos to grab the viewer’s attention. Ensure that your ad copy is clear, concise, and highlights the unique benefits of your product. Also, try targeting keywords with high search volume to increase your ad’s visibility to potential customers. 

To improve ad placement, target keywords relevant to your product to increase the likelihood that your ad will be seen by potential customers. Finally, consider using dynamic bidding strategies to adjust your bid amount based on the possibility of conversion.

  • Relevance

The relevance of an ad or product detail page to the user’s search query can affect the likelihood of the user clicking on the ad or product. 

Amazon’s algorithm considers several factors to determine the relevance of an ad. This includes the significance of the keywords used in the advertisement to the user’s search query, the product’s relevance to the user’s search query, and the relevance of the ad’s landing page to the user’s search query.

How to improve this: Use targeted keywords and highlight the unique benefits of your product that match the user’s needs. Also, consider using negative keywords to filter out irrelevant search queries that may negatively impact your click through rate.

An image showing a product listing, price tags, a calculator, and a sales report

  • Price

Price is a critical factor for many Amazon customers when making purchasing decisions. It can also affect the likelihood of a customer clicking on an ad or product detail page.

Lower-priced products usually have a higher CTR compared to more expensive products. Customers are likelier to click on an ad or product detail page if the price is reasonable or competitive.

How to improve this: When launching a new product, it’s essential to consider pricing strategies that can improve your click through rate. Try implementing a discount strategy where you gradually decrease the discount over several weeks (e.g., 50% off the first week, 40% off the second week, and so on).

This approach can help you generate enough reviews, good ratings, sales, and rankings to compete with more established products in your category.

How to Calculate Your Clickthrough Rate

Calculating CTR is simple. You can do this by dividing the number of clicks by the number of impressions (or views). Then, multiply the result by 100 to get the CTR percentage.

The formula for calculating Amazon CTR is:

CTR = (Number of clicks / Number of impressions) x 100

For example, if a product listing is displayed 1,000 times and receives 50 clicks, the CTR would be:

CTR = (50 / 1,000) x 100 = 5%

So, the CTR for that particular product listing would be 5%.

Remember that Amazon calculates CTR based on clicks from all sources, including search results, product recommendations, and advertising. 

Where to find your CTR figures on Amazon

Understanding your click through rate is crucial for evaluating how effectively your ads reach potential customers and adjusting your strategy accordingly. 

Here are the different Amazon places where you can find your CTR figures…

Advertising Console

To view your CTR data on Amazon Advertising Console, log in to your account and navigate to the “Campaigns” tab.

Choose the campaign you want to view and click on the “Reports” tab. 

From there, select “Create a Report” and choose the report type as “Search Term” or “Targeting“. Set the report date range and relevant settings before clicking the “Create Report” button. When the report is generated, download and open it to view your click through rate figures. Your CTR data will be listed under the “CTR” column.

A screenshot of the Amazon Store Page Insights

 

Store Page Insights 

To locate your CTR figures on Amazon Store Page Insights, go to the “Traffic” section and look for a graph showing your click-through rate (CTR) over a specified time period, along with the number of sessions and pageviews your store has received.

Search Catalog Performance (in brand analytics)

To find your click through rate figures on Amazon’s Search Catalog Performance, go to the Brand Analytics section of your Amazon Seller Central account and click on the “Search Terms” tab. 

Then select “Search Catalog Performance” to see a list of search terms customers have used to find your products.

Under the “CTR” column, you can find the percentage of clicks your products received out of the total number of impressions for each search term.

Amazon Attribution

If you’re running sponsored product ads off Amazon, you can track your CTR figures using Amazon Attribution.

Log in to your Amazon Attribution account, navigate to the “Campaigns” tab, and select the ad campaign you want to view data for.

 

Wrapping up

Improving your Amazon click through rate is a continuous process involving constantly optimizing your listings, using the most relevant keywords, offering discounts and coupons, working hard for positive product reviews, improving your products’ pricing, and optimizing for higher ranking on the Amazon SERPs.

Need help with identifying the trouble spots in your Amazon business? 

We can help you establish the best strategies available to boost your Amazon sales.

Schedule a FREE consultation call with our team of Amazon advertising experts at AMZ Pathfinder. 

 

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What is A Good Amazon Clickthrough Rate and How to Improve It?

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