Conversion rate is the measurement of success in getting visitors to perform a desired action. This metric does not apply to just one advertising tool.
A conversion rate can be calculated for any tool that seeks to have visitors do more than view your content. This could include filling out a form or signing up for an email list. The conversion rate can be calculated by dividing the number of desired actions completed by the number of visitors.
The conversion rate is not the most important measurement to focus on. However, it is useful and should be combined with other metrics to get a full picture of an advertising campaign.
Why is a conversion rate important?
High conversion rates mean that an advertising campaign is effective at guiding visitors through the marketing funnel. Therefore, marketers should seek to optimize the factors that influence conversion rates.
A good example is tailoring content to a specific audience. Companies can also make attractive offers and ensure that that the steps to complete a desired action, or calls to action, are simple.
Measuring conversion rates manually can be difficult for any marketer. Luckily, there are many available web analytics tools, such as Google Analytics. These can make analyzing conversions much easier.
In a Sentence
Our new ad had a high conversion rate, making it very effective.