Click-through rate (CTR), is a metric that measures the percentage of ad views that lead to clicks, it measures how effectively your ad attracts viewers.
The Amazon click-through rate, or (Amazon CTR), is a metric that measures the percentage of ad views that lead to clicks. The formula to determine the CTR is (clicks/impressions) * 100. This Amazon PPC metric can be found in Advertising > Campaign Manager. Each campaign and keyword has its own CTR in your Campaign manager. This will allow you to assess the success of these individual campaigns and keywords, giving you insight into which are working and which are not.
The CTR essentially measures how effective your ad is at attracting new viewers to your page. An impression is when your ad is displayed on someone’s screen, or, in other words, when your ad is seen. A click is when someone chooses to click on the ad.
So, if your ad is seen 100,000 times in one month, this might result in 250 clicks. The Amazon average click-through rate for this month would be 0.25%. In other words, 0.25% of impressions became clicks for your ad campaign.
The higher your Amazon CTR, the better. The truth is, most CTRs will be less than 1%. So, what CTR should you look for on Amazon? A good CTR is anything over 0.5%, while a CTR rate of 0.3% or less is a sign that the ad campaign needs attention. It is possible for Amazon ad campaigns to achieve CTRs of 2-3% with a careful marketing strategy.
If you feel that your CTR needs improvement, you should consider:
If your CTR is too low, try altering the position and quality of your ad to increase the number of clicks it receives. You should also take into account your Amazon ACOS and ROAS when calculating your CTR. These metrics are useful for calculating the effectiveness of your ads.
If your CTR is too low and results in an unimpressive Return on Ad Spend, try altering the position and quality of your ad to increase the number of clicks it receives.