What CTR is good? Is there a list of metric to tell us whats good?
Hello,
I been going thru my ads and I can see some got lots of impression with few clicks and CTR is low like 3% 2% or even 0.50%, some with not much impression but there are clicks and the CTR is 33% 67% 100%. I just wonder whats good? More impression is better I think? meaning more people looking into it? And the ones with low CTR they all have sales, is low CTR combine with high impression and sales is a good metric?
thanks,
What CTR is good? Is there a list of metric to tell us whats good?
Hello,
I been going thru my ads and I can see some got lots of impression with few clicks and CTR is low like 3% 2% or even 0.50%, some with not much impression but there are clicks and the CTR is 33% 67% 100%. I just wonder whats good? More impression is better I think? meaning more people looking into it? And the ones with low CTR they all have sales, is low CTR combine with high impression and sales is a good metric?
thanks,
0 replies
Tatiana_Amazon
Hi @Seller_1drsiTB5msDwV,
Thanks for bringing this question to the forums. Advertising metrics can be a little tricky sometimes so I'll do my best to help explain this.
Let's start with Impressions. Impressions occurs when an ad is displayed on whatever page a customer is shopping on. It does not necessarily mean the buyer has interacted with the ad, it just means you have won the bid for placement on that customer's page.
CTR (click-through rate) looks at the number of times someone actually clicks on the ad and is redirected to the landing page for that ad. It is calculated as number of clicks divided by number of impressions.
Having more or less of one of is not an immediate indicator of performance. Impressions are typically a sign that you've chosen good keywords and clicks are usually a sign that your targeting the right customers.
I would suggest looking at your Conversion Rate (CVR), Advertising cost of sales (ACOS), and Return on Ad Spend (ROAS) to get a better idea of how your advertising is affecting your sales.
- CVR will show you the percentage of customers visiting your products convert and purchase a product. If you see your CVR start to climb with advertising, that means your Ads are being effective and bringing buyers to your pages.
- ACOS is the percentage of your direct sales that you have made specifically with sponsored ad campaigns. This also helps measure the efficiency of your ads. If your ACOS is high, this typically means you are spending a higher amount for a few sales, versus when it's low, you are spending less for a higher number of sales.
- ROAS is the total product sales divided by the total advertising spend. It is similar to ACOS, but the inverse of it. It can be helpful in learning how effective your advertising is, meaning, is it really generating more sales?
I definitely presented you with a lot of information here so feel free to ask me more questions. I'm happy to provide further clarification. Additionally, you can learn more about each of these different Ads metrics by following the links below:
Tatiana