Is there any relationship between Amazon PPC Conversion Rate and Total Conversion Rate?
Hello advertisers, probably one of the questions you might have asked yourself is - “Is there any relationship between PPC Conversion Rate (Let’s call it CR) and Total Conversion Rate (Again, let’s call it TCR) or if I somehow increase my CR, will it also increase my TCR ?”
Are you willing to know the answer? Let’s find it out together with the following analysis.
But before that, let’s just go through the basic definitions of these terms quickly -
You can find these metrics easily on your advertising console.
Okay, so what’s a session??
According to Amazon, a session is when a unique visitor visits your page within a certain time period. And since, it can also happen because of the advertisements, the sessions also contain sponsored clicks.
So now that you are clear with the terms, let’s move to the analysis. We started by selecting the three biggest accounts from our valuable clients and recorded the CR, TCR, and ACOS for thousands of ASINs they advertise on Amazon for the last 90 days globally. Then we divided the data into 5 groups according to the ACOS intervals of 20% (0-20%, 20-40%, 40-60%, 60-80%, 80-100%) just to check if the conversion rates vary with respect to the ACOS too. At last, we plotted a scatter graph for each of the groups, where the ACOS ranged from 0% to 100% within an interval of 20% as explained above.
Let’s see how the CR v/s TCR scatter plots look for all the ASINs-
Here, each dot represents one ASIN. The x-axis is the CR and the y-axis is TCR. We can observe here that the ASINs with higher observed ACOS are conserved to low conversion rates (CR and TCR both). Also, the ASINs with lower ACOS seem to have higher CR than the TCR and vice versa. Still, we can’t see any promising relationship between the CR and TCR.
Now, let’s have a look at the performance of the 10 best ASINs -
Ahh!! we know, it is not very visible from the graphical representation of how these two parameters are related, so we dived a little deeper and calculated the linear bivariate correlation between them.
Yes, of course, we are not going to share the methodology and the process, we don’t want to make it a statistics lecture (boorrriinnggg). But the conclusion says that these two parameters are positively correlated, but the strength of the correlation is very weak. Hence, we can’t really assume that they depend on each other very much.
But still, there are some vital points that one should keep in mind while checking these conversion rates as it vastly affects your Amazon PPC advertisement performance.
We at m19, take care of these things on a regular basis. Our customer support and analytics team keeps an eye on your brand performance and brand popularity to make the most for you. And, no doubt our AI-driven tool keeps optimizing your campaigns every day, making you save efforts and increase your productivity .
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