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Traffic vs Conversions: Which Should You Prioritize?

Master the balance between traffic and conversions to maximize e-commerce success. Learn when to focus on each for optimal profitability and growth. By Marissa Incitti July 2, 2024

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Let’s face it, selling online is HARD. 

When you’re dealing with mountains of competition, a limited budget, and a world where financial fears are prevalent, your main focus is hitting your revenue goals and nothing else. But traffic is a very necessary part of hitting those revenue goals, even if it seems like all you’re getting is traffic and no conversions. 

The real magic happens when you find the right balance between the two. In fact, these two metrics are so interrelated that you can’t have one without the other – especially if you want to grow your business, improve rankings, and maximize profitability. But how do you know when to prioritize one over the other? We’ll dive into the circumstances where each should play center stage below.

Today's top brands plan to allocate 39% of their monthly advertising budgets to Amazon.

Traffic Vs. Conversions: How to Choose? 

Choosing between traffic and conversions hinges on the context of your marketing efforts and the specific goals you aim to achieve. Both strategies have their merits and should be used at the appropriate times to align with your overarching goals.

This balance isn’t just a matter of preference, but also one of context, ad budget, and timing. Here’s a detailed exploration of when to focus on each approach throughout the year and how to leverage both to maximize your e-commerce success.

During Tentpole Events

Prime Day

Prime Day is a pivotal event where traffic generation plays a crucial role. Investing in video and display formats for Amazon DSP (Demand Side Platform) is essential. Video inventory, especially on platforms like Freevee, Prime Video, or OTT/CTV, helps build brand awareness in a passive viewing environment, priming (pun intended) customers for purchases.

Consumers often add products to their carts or wishlists ahead of Prime Day. By increasing ad budgets and bids in the weeks leading up to the event, you can capture the increased traffic and convert these browsing customers into buyers. On Prime Day itself, shift your focus to conversions by utilizing Sponsored Ads, placing them within search results and on product detail pages to maximize your visibility and sales. 

Cyber 5

During the holiday season, boosting conversions becomes paramount. Sale badging and price slashing are effective tactics, as customers expect deals. However, driving the most relevant traffic to your Product Detail Pages (PDPs) is essential. To enhance CTR and CR, expand relevant keywords, pause poorly performing ones, and update listings to align with bidded keywords.

Starting your advertising campaigns 2-3 weeks before the event allows for data accumulation, improving the likelihood of winning bids. Longer campaign durations also enable algorithms to optimize bids effectively, ensuring efficient ad spend and higher conversion rates.


Throughout the Year

During periods outside major sales events, a balanced approach often works best. If you’re launching a new product or brand, driving traffic is crucial. This phase is about building awareness and introducing your offerings to potential customers. Here, leveraging non-branded search terms can draw attention to your product catalog, laying the groundwork for future conversions.

Deciding whether to boost conversions or traffic throughout the year largely depends on your goals:

  • Brand Awareness: Focus on traffic, especially for new brands or product launches. This strategy helps customers discover your product.
  • Profit:: Prioritize conversions for established brands/products to improve profit margins.

Ideally, a mix of both strategies should be employed continuously. This ensures you attract new customers who are likely to convert and foster repeat sales from existing customers.

Leveraging DSP

DSP is excellent for building awareness for upcoming promotions or tentpole events and driving traffic to your page. During slower periods, proactively putting ads in front of users based on their browsing behavior keeps your product top of mind. This strategy targets users who need a product rather than those waiting for a discount.

Final Thoughts: A Balanced Approach is Best 

Balancing traffic and conversions requires a nuanced understanding of your marketing goals and the timing of your campaigns. By leveraging dynamic pricing, intelligent advertising, and a strategic mix of traffic and conversion-focused efforts, private label sellers and brands can optimize their e-commerce performance year-round. Feedvisor’s AI-powered platform provides the tools and insights needed to navigate these complexities, ensuring that you not only drive traffic but also convert it into profitable sales.

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