Conversion Rate
The percentage of users who complete a desired action after clicking an ad, calculated as conversions divided by clicks.
What Conversion Rate means
Conversion rate is the ratio of completed conversions to total clicks (or visits), expressed as a percentage. It's a key metric for evaluating ad and landing page effectiveness. Abnormally high conversion rates may indicate fraudulent activity, while very low rates may suggest a disconnect between ad promises and landing page reality — a common compliance issue. Platform policies require that ads accurately represent the product or service and that landing pages deliver on ad promises. Monitoring conversion rates by audience segment, creative variant, and placement helps identify both performance opportunities and potential compliance issues. Industry benchmarks vary significantly, but sudden changes in conversion rate often warrant investigation.
Related terms
Conversion
A desired action completed by a user after interacting with an ad, such as a purchase, sign-up, or download.
Click-Through Rate
The percentage of users who click on an ad after seeing it, calculated as clicks divided by impressions.
Landing Page Policy
Platform rules governing the destination pages that ads link to, including requirements for functionality, content, and user experience.
Cost Per Acquisition
The average cost to acquire one conversion, calculated by dividing total ad spend by the number of conversions.