Glossary

Conversion Rate

Conversion rate is the percentage of clicks (or interactions) that ended in a conversion. It measures what happens after the click: landing page quality, offer strength, and audience intent combined. It's the multiplier that decides whether traffic becomes results.

Formula: Conversion rate = Conversions ÷ Clicks × 100

How to read it

Falling conversion rate with stable CTR points at the landing page or offer, not the ad. Segment by device before concluding anything; mobile and desktop rates often differ drastically.

Where it misleads

Small sample sizes lie. Twenty clicks with one conversion is not a 5% conversion rate you can plan with. Wait for volume before optimizing.

Related terms

Conversions →

Conversions count how often users completed the action you defined as valuable (a purchase, lead form, call, or signup) after interacting with your ad. Conversions are the metric campaigns are ultimately judged by, because they connect ad spend to business outcomes.

CTR (Click-Through Rate) →

CTR (click-through rate) is the percentage of ad impressions that resulted in a click. It measures how well your ad matches what the audience wanted in that moment. A high CTR means the message resonates; a low CTR means the ad, the audience, or the moment is off.

CPA (Cost per Acquisition) →

CPA (cost per acquisition, also cost per conversion) is the average amount you spend to get one conversion. It's the efficiency metric for lead and signup campaigns: as long as a customer is worth more than their CPA, the campaign makes economic sense.

Metrics explained are nice. Metrics watched are better.

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