Chart showing Likelihood of sale and CTR

Data Analysis: Will your keyword get a sale?

How much more likely are high click-rate (CTR) keywords to get a sale than low-CTR ones?

Short answer: 3x more likely!

In our previous data analysis blog post we advocated ignoring click-through rate (CTR) if you already had a sale, instead optimizing based on ACoS only.

But what do you do when you don’t have a sale for that keyword? That’s where CTR can give you some answers.

In our study of more than 70,000 keywords over 2 months we found that high volume keywords (those with more than 25 impressions/day) with a high (greater than 1%) CTR are nearly 3x more likely to get a sale than a high volume keyword with a low (0.1%) CTR.

For low volume keywords, the effect is even more pronounced: high-CTR keywords are more than 5x more likely to get a sale!

Check out the chart below.

Chart showing Likelihood of sale and CTR

As CTR goes up, the likelihood that the keyword has seen a sale also increases steadily.

 

So how do you use this information?

  • Cut the cord earlier on low CTR keywords. If only 30% of 0.1% CTR keywords are anticipated to get a sale, you should aggressively eliminate them. Don’t be afraid to turn search terms with <0.1% CTR into negative search terms. They’re not likely to convert so you’ll save money overall.
  • Increase your bid on high CTR keywords. These are far more likely to convert but not guaranteed to do so. Focus your research budget on these so you can figure out if they will convert or not. The earlier you find a converting keyword, the faster you can optimize that keyword and make more money!
  • Lower your bid on low CTR keywords. This will reduce your financial exposure for that keyword. A lower CPC will help you stretch your budget when researching these low performing keywords.
  • Optimize your listing. If your average CTR for a product is low, see what you can do to increase it. Can you try a new main picture? Have you tested your price? As a last resort, try testing new titles (but be careful, it can have a drastic negative impact on your ranking).

 

Prestozon makes it easy to aggregate keywords and search terms across campaigns and over any time period so that you can use your data effectively. Try Prestozon and use the promo code “CTRBLOG” to get a week free of Prestozon Premium!

2 comments on “Data Analysis: Will your keyword get a sale?

    • prestoadmin on

      Hi David, Thank you! And good question. We think 0.2% (and lower) is a low CTR and higher than 0.4% is high, in general. In the blog post, we used the extremes of the plot which were .1 and 1%.

      Reply

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