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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.

How It Works

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

Real-World Example

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

Common Mistakes

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Optimizing traffic volume without fixing conversion rate

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Using site-wide rate instead of per-campaign rate

Related Terms

Landing Page

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

A/B Testing Ads

Running two ad variations simultaneously to determine which performs better.

CPA (Cost Per Acquisition)

The average cost to acquire one customer or conversion.

Conversion Rate FAQs

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.

Need help with conversion rate?

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