Conversion Rate

Categories: C, SEO Glossary

Conversion Rate refers to the proportion of users who take a desired action after engaging with a digital asset, such as a display ad or a website. This action can vary depending on the marketing strategy, but often includes behaviors like clicking through to another page, downloading a file (for instance, a white paper in a B2B context), or registering for exclusive offers.

To calculate the conversion rate, divide the number of actions taken by the total number of clicks or interactions. The formula can be expressed as: Conversion Rate = (Actions Taken / Total Interactions) x 100%. A higher conversion rate indicates a more effective campaign, signifying that a greater percentage of users are completing the target action.

For instance, if a website receives 100 visitors and one of them completes a purchase, the conversion rate would be 1%. This metric is crucial for understanding the effectiveness of online marketing efforts and optimizing strategies for better results.