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Conversion rate is the percentage of user actions taken after total clicks on a display ad or other digital asset. Your marketing strategy defines your efforts, commonly including clicking on a second link, downloading an asset such as a B2B white paper, or signing up to receive special retail offers. The formula is clicking / actions = conversion rate. The higher your conversion, the more successful your online marketing campaign.

Conversion Rate

If you want to grow your business with digital marketing, tracking your marketing campaign conversions can help you refine your marketing strategies, improve the effectiveness of your content marketing, or better identify the behavior of cart abandoners from a Facebook advertising campaign. And with the right web analytics and conversion tracking tools, such as Google Analytics, you can turn more of your website visitors into customers.

As a business owner, you may worry about your bottom line. A higher conversion rate means spending less on your marketing efforts while earning more customers. So, it’s a good idea to know what a conversion rate is, how to calculate it, and ways to increase it. Luckily, there are many methods to improve your conversion rate and boost your profits.

What’s a Good Conversion Rate?

Conversion rates vary widely by industry and business model. You can head to our conversion rate benchmarks to learn average conversion rates for Google Search, Display, Shopping, Facebook, and more. To determine your marketing efforts’ effectiveness, you must know how many people respond to them. Because conversion rate compares the number of customer responses to the total number of contacts, it’s one of the most valuable and accurate metrics.

How to Calculate Conversion Rate?

The conversion rate calculates by dividing the total number of users who have completed an action by the overall size of the audience exposed to that ad, then multiplying that by 100. For example, an advertiser runs a campaign with an audience of 20,000 people. Out of that group, 800 people clicked.

How to Calculate Conversion Rate?

Why are Conversion Rates Important?

Conversion rates are an effective way of comparing and contrasting the performance of multiple advertising channels. As with the example above, conversion rates are significant when running mobile user acquisition because they can measure the success of each campaign. They can also use to set ROI expectations when scaling a campaign.

Conversion rates don’t always have to refer to clicks – they can also refer to conversion events further down the funnel. For example, it is possible to calculate the percentage of users who went on to install an app or complete an in-app action. This is important for advertisers and marketers because it helps them identify valuable users. This information is fed into the funnel to aid targeting and optimize campaign performance.

When used correctly, conversion rate analysis can reveal which channels are most effective for promoting a particular app, helping an advertiser to determine the effectiveness of their copy and use it to guide strategic decisions. If your data shows that a conversion rate is lower than expected, they use it to spot issues with an app’s UX and highlight other areas of improvement.

No conversion rate defines success across mobile advertising, but research into industry benchmarks and vertical-specific conversion expectations can help. You can use this research to compare these figures with the performance of your in-house advertising campaigns across a selection of channels and advertisers.

The Classic Conversion Rate Optimization Test is Silly

Ladies and gentlemen, this is the Great Conversion Rate Optimization Fairy Tale. Once upon a time, a self-professed marketing guru told you you must optimize your site. They shared one example where the author changed the button color, the font spacing, or the image. The advertiser’s conversion rate jumped by 2-7%.

The Classic Conversion Rate Optimization Test is Silly

The Conventional Wisdom

Learning that the experts you’ve been listening to are wrong are like knowing that mascots aren’t accurate for the first time as a kid. Underneath that fluffy suit, there was just a sweaty, unshaven guy. Everything you’ve learned about conversion rate optimization is a bit like that: shiny and pretty but seriously lacking in substance.

How is everyone getting it so wrong? Primarily, if you’re singing the same song as everyone else, you can never be anything more than average. When all of the gurus preach the same optimizations, and all of your competitors listen to them, how are you supposed to stand out?

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