The concept of conversion in advertising

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Conversion in advertising is a key indicator that displays the ratio of your costs to the number of completed target actions. The goal of any PR campaign is to encourage a potential client to take a step that will bring them closer to a purchase, and Internet companies know the main factors that influence this decision.

Calculating the conversion of, for example, contextual advertising is not difficult. Things are much more difficult with offline advertising. For a long time, it was believed that its pharmacy database conversion cannot be clearly assessed. In our article, we will tell you whether it can be calculated, and also analyze the factors and methods for increasing the conversion of online advertising.


The English term “conversion rate” (CR), which is translated as “conversion coefficient”, means the ratio of the number of website visitors who performed any target actions on it to the total number of visitors, expressed as a percentage.

The concept of conversion in advertising

It is generally accepted that conversion rates within 10-25% indicate the success of a PR campaign, but in reality 3-5% is enough. There is no objective and generally accepted CR indicator, since everything depends on the characteristics of the advertising object. The higher the cost of the product, the lower the conversion rate, and vice versa.

Calculating the conversion rate is quite easy, because you just need to take the conversion volume and divide it by the total number of unique clicks on the ad for a certain time period. For example, if the PR block was clicked 160 times, and the total number of conversions is 4, then the CR will be calculated as follows: (4 / 160) * 100% = 2.5%.

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A positive result in online trading is the number of website visitors who eventually became subscribers, left their contact information, called to make a purchase, etc. In online marketing, the most important indicator is the number of interested page visitors (hypothetical clients from the target audience).

The difference between advertising goals and conversions
The ultimate goal of any advertising is a certain user behavior/action, which should ultimately lead to the desired effect.

The difference between advertising goals and conversions

More specific PR goals may include :

viewing a specific web page;

transition to a certain number of website pages;

registration;

submitting a request to receive a service;

placing an order;

and much more.

With Yandex.Metrica and Google Analytics, you can easily set the goal of contextual advertising. It can indicate how much the site visitor has achieved the desired result.


Read also!

"Types of Advertising in Marketing: Pros, Cons and Examples"
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Based on the above, conversion demonstrates the ratio of the number of people who went to the site and achieved the final goal to the total number of visitors to the web resource. Thus, this indicator indicates the level of success of a particular PR campaign and the return on investment. The higher the ratio, the more productive the advertising produced.