One of the most effective tools for every Amazon seller is Amazon PPC advertising. Conducting effective advertising campaigns is essential for boosting sales and surpassing competitors.
Paid advertising, however, is challenging to manage. Because of this, many Amazon sellers experience low conversion rates and spend a lot of money on unsuccessful marketing initiatives.
If your Amazon PPC campaign is not converting well, we might be able to help! In this article, we’ll discuss some potential causes for your Amazon PPC advertisements’ low conversion rates as well as some actions you can take to improve them.
Amazon PPC Conversions Explained
A sale and a conversion are essentially the same things. The conversion rate indicates what proportion of people who click on your product listing actually purchase it.
The calculation is the conversion divided by clicks. The result is your conversion rate.
As this is highly dependent on your niche and the price range you are operating in, there is no precise estimate of how high the conversion rate should be.
Why Your Amazon PPC Ads Might Not Be Converting
If your Amazon PPC conversion rate is really poor, there may be issues with the campaign structure, management, or even the listing itself. Here are some possible reasons for a low conversion rate.
Your Product Listing Isn’t Optimized
Typically, a low-quality listing is the main cause of your PPC ads’ poor conversion rates. Customers have a very limited attention span, therefore you only have a few minutes or maybe even seconds to persuade them to buy your product.
This means that your Amazon listing must be completely optimized.
The good news is that if you invest in effective listing optimization, it will also have a beneficial effect on your organic results in addition to improving the efficacy of your PPC advertising.
Your Campaign Aren’t Being Regularly Optimized
Finding your way through the world of Amazon PPC can be challenging, particularly for individuals who are new to the field but also for experienced merchants.
It can occasionally be more confusing than beneficial to have thousands of fresh pieces of data and hundreds of Amazon PPC guidelines that all appear to propose different tactics.
But, one of the largest and most fundamental errors is failing to continuously optimize your Amazon PPC ads. If your campaign isn’t regularly adjusted in the best way possible, you won’t see good results or high conversion rates.
You need to keep returning to your newly discovered keyword data and using these revelations to alter your campaign as necessary. Every single day that your campaign is active, this campaign assessment should be conducted at least once a day.
You’re Not Getting Enough Impressions
You have no chance of generating any conversions if no one sees your ads because no one can click on them. As a result, if your Campaign Manager shows you that your impression counts are low, you should improve them to ensure that more people notice your advertisement and click on it.
You’re Selling A Bad Product In An Oversaturated Market
Since you have already made an investment in your product, no seller wants to hear that it is subpar, but sadly, your product may simply not be attractive enough for people to buy or there may not be enough demand for the type of product as a whole.
The fact that there are already hundreds of alternative offers from other merchants could be another major issue with your product. This is a particular issue in crowded markets.
Every attempt to operate a successful, highly converting Amazon PPC campaign is more or less doomed to failure if your product is not fundamentally unique from competing products that have been on the market for some time and have already accumulated multiple favorable reviews.
No matter how well your PPC campaign is configured, if your product is poorly chosen, the advertisements won’t convert unless you change your product.
The Listing Has A Poor CTR
The main principle of Amazon PPC is that impressions and clicks are inextricably linked. Your ads will have a very low click-through rate if they receive many impressions but very few clicks.
But, having a good CTR is important since it implies that more people will look at your listing and interact with your product, drastically increasing the likelihood that it will be bought in the end.
An average Amazon Advertising click-through rate of 0.70% to 1% is excellent, and 0.5% to 0.7% is definitely good. If your CTR is less than 0.5%, optimization is unquestionably necessary.
A bad primary image, having no or few reviews, and/or a bad listing title are the main causes of a low click-through rate. Consumers are extremely visual beings, so it is more important to make a great first impression when buyers have a variety of product options to choose from.
You Haven’t Defined Your Target Audience
Creating a keyword list and daily bid adjustments are essential, but you also need to identify your target market because, without this information, you won’t know which keywords to target, what kind of ad text to write, or when to run advertisements
For instance, if stay-at-home moms are your target market, running advertisements all day would make more sense; if working parents are your target market, running ads at night or during their lunch breaks will yield better results.
You Have Unattractive Terms Of Purchase
Consumers are constantly searching for the ideal purchasing conditions. Your Amazon PPC may be receiving several clicks but no conversions because yours are simply insufficiently appealing or practical.
Price, availability, shipping costs and times, as well as whether or not your product is eligible for Prime, are factors that affect the customer’s choice to buy or not buy your goods.
How To Improve Your PPC Conversions
Your Amazon PPC campaigns may not be converting for a number of different reasons. In any case, your Campaign Manager and Dashboard are your best tools for carefully reviewing your data.
Use this data to periodically assess if you are using the best keyword approach possible and whether your bids are high enough to get enough impressions.
Make sure that your listing is flawless and portrays your product in the best light possible to raise your click-through rate and ultimately persuade customers to make a purchase.
The headline, the bullet points, and the product images in particular are crucial.
Keep in mind that a sale may ultimately be made or lost depending on your shipping policy and general terms of purchase. A high conversion rate on Amazon can only be attained with quick service, affordable delivery, and consistent availability.
To review your campaigns and listings and, if necessary, redesign them, it is better to let a seasoned Amazon PPC agency or consultant handle this.
They can provide you with helpful advice that you can successfully apply yourself in the future and can promptly spot gaps in your campaign structure or listings.
Having an Amazon PPC campaign that isn’t converting can be extremely frustrating, however, there’s always a reason and solution.
You should now be able to understand your ad campaigns better and boost your conversion rate with this guide.