Paid media basics
Conversion rate
The share of visitors or clicks that go on to complete a conversion.
What it is
It measures how well the landing page and the offer turn interest into action, given the traffic the ads send.
Why it matters
For lead generation and e-commerceA higher conversion rate lowers the cost of every lead or sale without touching the media price.
How it is measured
Formula
Conversion rate = conversions / clicksDivide conversions by clicks or by visits, and keep the same basis when comparing.
A common mistake
Comparing conversion rates across very different traffic. Branded search converts far better than cold social, and neither number says the page is good or bad.
All terms