Conversion Rate
The conversion rate measures the effectiveness of your digital marketing efforts by tracking the percentage of user actions relative to total clicks on a display ad or any other digital asset. Your marketing strategy lays out the roadmap for these actions, which typically encompass various engagements such as clicking on a secondary link, downloading valuable assets like a B2B white paper, or opting in to receive exclusive retail promotions.
Calculating the conversion rate involves a simple formula: dividing the total number of clicks by the number of actions taken. A higher conversion rate signifies a more successful campaign, indicating that your content resonates with your audience and motivates them to take meaningful actions that align with your business objectives.
Example
Let’s say you run a digital ad campaign for your online bookstore. The ad promotes a special discount on e-books, encouraging users to click through to your website.