Conversion Rate [CR]

What does conversion rate mean?

Conversion rate, like CTR vs. clicks, is theoretically a better metric than conversions alone. This is because it allows you to see how quickly an inventory is generating conversions. This makes it easy to compare campaigns/publishers with different numbers of impressions.

A conversion is a collective term for an acquisition (sale) or action as a result of a CPA campaign. It comes from the idea of turning a non-customer into a customer.

Unfortunately, the conversion rate is a fickle measure. This is because CPA campaigns are often used to remove residual inventory. The quality of unsold assets can vary significantly based on other ongoing campaigns.

Best advice

Since clicks are part of the CR equation, it can make sense to optimize your CTR to increase conversions. However, the following example shows why it is far from reliable.

For example...

If a food website with 1,000,000 impressions per month shows only 200,000 ad impressions in January, the site's fruit CPA campaign has access to 800,000 ad impressions. This will probably be on the front page and in the fruit area as well.

The CPA campaign is likely to generate a lot of clicks. In fact, the theme of the ad (fruit) is related to the theme of the site (food). However, you are also likely to get a lot of conversions because you have good access to website users and where users are most interested in the subject of the ad (in the fruit sections and on the page). †

However, since February, only two campaigns have been launched on the same site. The first is to capture the homepage during the month. The second is a sponsorship deal on the fruit section of the site, which has a total of 200,000 impressions.

The fruit CPA campaign still has 800,000 available impressions, but the best pages (and users) will disappear, so conversions will likely be much lower. You might not get a relatively different number of clicks because the ads and website match up pretty well, but you'll likely get a lot less conversions.

This means...

The example above explains why advertisers aren't too concerned about conversion rates. They want to limit ad impressions to keep ad costs down, but they need to realize that sites have different current bids and therefore the inventory they receive will be of different quality. Advertisers therefore often focus on the total number of conversions.

However, the conversion rate can be much more useful to publishers/ad networks as they can calculate it for placements and try to serve more CPA ads there. Moving inventory in this way is key to maximizing a website's revenue (a process often referred to as revenue management).

7 things to know about conversion rates

A conversion is a general term for any online action that represents a goal (such as a sale).
According to Adobe, 40% of marketers say their conversion rate is less than 0.5%. Think of it as a low benchmark to be surpassed.
What percentage of clicks on your ads lead to a sale? Work on it and then try to improve it.
You can (and should) calculate the conversion rate of any online ad, post, email, website or webpage.
If 5% of clicks on an ad in the past resulted in a conversion, you can assume that everyone who clicks on it also has a 5% chance of converting.
CRO stands for Conversion Rate Optimization and it means testing things to improve your conversion rate. This can lead to huge profits.
According to EyeView, adding videos to landing pages can increase conversions by 86%.

Other names of conversion rates (synonyms)

radio control, CVR

Literal Meanings of Conversion Rate [CR]

Conversion:

Meanings of Conversion:

Under common law, it is a wrongful act to take personal property with the intent to permanently expropriate or damage the property in order to deprive the owner of the opportunity to use the property, making the person responsible for the damage liable for the full value of the property. property. †.
Alteration or reduction in the form or value of an offer.