#098: Why CTR Matters With Amazon Ads

Read Time: 2.5 Minutes

This week, we're diving into a critical metric that can make or break your Amazon Ads: Click-Through Rate (CTR).

Understanding what influences CTR isn't just about improving a number—it's about maximizing your ad budget, as well as increasing visibility and sales and proving to Amazon that your ads deserve to be shown.

Why CTR Matters on Amazon

First, a quick reminder: Amazon only charges you when someone clicks on your ad. Impressions (i.e. when your ad is displayed) costs you nothing.

This means impressions are essentially free advertising—but only if they eventually lead to clicks and conversions.

What many authors don't realize is that Amazon's algorithm heavily weighs CTR when deciding if, when, and where to show your ads.

Higher CTR signals to Amazon that your book is relevant and appealing to readers, which can lead to:

→ More frequent ad placement

→ Better positioning

→ Lower cost-per-clicks over time

→ More sales from your ideal readers

The Four Elements That Impact Your Amazon Ads CTR

When your ad appears in search results or product carousels on product pages, potential readers make a split-second decision whether to click on your ad (or not) based on just a few visible elements within your ad:

1. Your Book Cover

The visual hook that grabs attention first. For Amazon Ads, consider:

→ Clear typography/text that's readable at thumbnail size

→ Genre-appropriate imagery that attracts the right readers

→ Color contrast that stands out in crowded search results

2. Title & Subtitle 

These work with your cover to immediately communicate your book's value:

→ Front-load keywords readers search for into your subtitle

→ Use subtitles to clarify genre/subgenre expectations

3. Price Point

The price of your book creates an immediate reaction in readers of the value and quality of your book:

→ Test different price points to find CTR (and conversion) sweet spots

→ Consider how your price compares to similar books in search results

→ Strategic promotions/price drops can boost CTR

4. Reviews & Ratings

Social proof will instantly build credibility and authority:

→ The golden 4.2/4.3+ star rating significantly impacts CTR

→ The review count matters almost as much as the rating

→ First few reviews are crucial—don't advertise heavily before securing at least 20+ (good) reviews/ratings

Quick Action Steps This Week

Let's get a little more actionable now and give you something to work on if you're currently running Amazon Ads for your books:

→ Audit your current ads: Look at the CTR for each campaign (Automatic campaigns will generally have lower CTRs than keyword targeting campaigns) and identify your lowest performers

→ A/B test your weakest elements: If your cover isn't genre-appropriate or your price is out of market range, or your subtitle doesn't mention your genre/topic, test alternatives.

→ Before launching new campaigns, ensure you have at least 20 reviews/ratings, an optimized title/subtitle, and competitive pricing.

Remember, improving CTR isn't just about getting more clicks—it's about getting more of the right clicks from right readers who are most likely to convert.

I hope this has given you a better understanding of the importance of CTR with your Amazon Ads.

As way of numbers, I like to see CTRs of 0.2% or higher with Amazon Ads.

If a CTR is below that, there's generally something off with the targeting, so look at where the budget is being spent in these low CTR campaigns and optimize accordingly.

Thank you so much for reading, enjoy your weekend and see you next Saturday.

To Your Success
– Matt