Paid Media & Advertising

Conversion Rate

The percentage of visitors who complete a desired action.

Why It Matters

Conversion rate determines how efficiently your traffic turns into revenue.

Conversion rate is calculated by dividing conversions by total visitors and multiplying by 100. Improving it reduces CPA without increasing spend.

A landing page with 1,000 visitors and 30 purchases has a 3% conversion rate.

Optimizing traffic volume without fixing conversion rate

Using site-wide rate instead of per-campaign rate

A standalone web page designed specifically to receive traffic from an ad and drive a conversion.

Running two ad variations simultaneously to determine which performs better.

The average cost to acquire one customer or conversion.

What is a good conversion rate?

Ecommerce averages 2-3%, but landing pages for lead gen can reach 10-20%.

How do I improve conversion rate?

Test different landing pages, simplify forms, and ensure your ad message matches the page.

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