Better Click Through Rates Lead to Better Converstion Rates
by Brad Hunt • September 16, 2024
Too often we’re so focused on generating the best conversion rate (CVR) for our Amazon listings and ad campaigns that we lose sight of our click-through rate (CTR) and the IMMENSE value it brings to our marketplace.
Every 0.1% increase in CTR drives just as many additional sales as a 1.0% increase in CVR. Did you read that? I’ll say it again for those in the back:
.1% CTR = 1.0% CVR INCREASE
Obviously, not all traffic is valued the same, and not all ad campaigns drive traffic with similar intent. So, take that into consideration when determining how to optimize your ad campaigns.
You might be asking: what’s easier to achieve? An increase by 0.1% in your CTR on solid traffic sources or an increase of 1.0% in your CVR?
It’ll be different for every brand, BUT most sellers put much less weight on their CTR and I’d argue that in most cases, improving your CTR by 0.1% is easier than improving your CVR by 1.0%
Here’s why: A/B Testing
Testing things like your product listing title and your main image can have an impact on both CTR and CVR and is always a good idea to test regularly, especially if you’re brand registered because you can set up true A/B tests.
The best place to start is to A/B test your titles and main images on your products that have a worse-than-market average CTR. You can find this information using search query reports under the Brand Analytics section in Seller Central. I wrote about this in a previous blog post with regards to comparing your CVR to the rest of the market. The process is the same.
Ideally, you’re running these A/B tests on products that have high impressions and not many clicks. This is usually where most of the opportunity is.
Once you identify which image or title is driving a better CTR, monitor the sales that are generated to verify the intent of that traffic. Generally speaking, more traffic to a product page is a good thing. Don’t miss a uniquely effective opportunity to boost your CVR.