Conversion Rate is the metric used to measure the effectiveness of an advertising campaign or landing page. It’s calculated by dividing the number of conversions (be that a purchase or the click of a button on a landing page) by the total number of people who viewed the landing page. In PPC (Pay Per Click) advertising, Conversation Rates are measured by dividing the number of conversions by the number of advertisements clicked upon.
What is a Good e-Commerce Conversion Rate?
The Conversion Rate of websites will vary wildly, but the intent of a marketer is to improve it continually through A/B testing and other techniques. An appropriate Conversion Rate for an e-commerce website would be around 1% or 2%. The aim of marketing campaigns is to increase the conversion rate of landing pages and adverts to over 2%.
