For paid media planning, use the conversion rate of paid traffic specifically. Site-wide conversion rates are inflated by returning and direct visitors who were going to buy anyway.
Formula
Conversion rate = Conversions ÷ Visitors (or clicks) × 100
Every core ad metric from five numbers: spend, impressions, clicks, conversions and revenue.
Related terms
- CTR (click-through rate)CTR is the share of ad impressions that result in a click.
- CPA (cost per acquisition)CPA is ad spend divided by the number of conversions, such as purchases or leads.
- Statistical significanceA result is statistically significant when it is unlikely to have occurred by chance at a chosen confidence level, commonly 95%.
Part of the growth marketing glossary by Shiva Sharma.