Conversions in advertising
You can find out if marketing is effective by using different metrics. One of the most important is conversion. Its calculation makes it possible to find out which components of the sales chain are the weakest, how effective the advertising was, what needs to be done to increase the profitability of the portal.
With the help of the instruction below, beginners will be able to understand what conversion is, why it should be calculated, which indicators are considered good, which are bad, and how to increase them, making the business more successful.
What constitutes a conversion?
Consider the following situation. One hundred people have visited the portal with the help of contextual advertising. Ten visitors performed some targeted action on it - they registered, left contact information, downloaded paid content or made another purchase. In this case, the conversion rate was ten percent. If the target action was performed not by ten users out of a hundred, but by only three, the conversion rate is three percent.
Conversion is the number of targeted actions performed by portal visitors to the number of people who visited the site. This indicator allows you to determine the effectiveness of marketing and understand how successful business processes are. With its help, it reveals the effectiveness of the Internet resource, calculate the effectiveness of advertising.
The formula for calculating this indicator:
CR = Number of target actions / total number of visitors to the resource × 100%.
What affects conversion rates?
This indicator is variable, it is constantly changing under the influence of various factors.
The conversion rate is influenced by such external factors:
- Search engine optimization of an online resource that affects its promotion on the Internet.
- The area in which the company operates (competitor activity, seasonality of demand, etc.).
- Type of business. For sites of modern online stores is good is the conversion rate of even 2%, as many users before making a purchase long price. But the conversion rate of the site pizzeria often reaches thirty or more percent, because many visitors go to it purposefully, to make an order.
Internal factors have just as much influence on conversion rates, which include:
- visual appeal of the site design;
- interface convenience;
- ease of order creation;
- quality of the posted content (product photos, product features);
- availability of a mobile version of the Internet portal;
- fast loading times, login optimization.
To influence external factors is very difficult, but to optimize the site to an experienced specialist will not be difficult.
What is the purpose of optimization?
By optimizing your conversion, you can:
- Understand why visitors are leaving your site.
- Find out how effective your advertising campaigns and various innovations have been.
- Calculate the potential income, make investments in promotion more effective.
Conversion in the advertising industry
Conversion is often confused with the clickability of an ad (the ratio of the number of clicks made by users to the number of all ad impressions). This indicator is called CTR.
CTR is calculated using the following formula:
Number of clicks on the advertising banner / number of visitors to the online resource who have familiarized themselves with the advertisement x 100%
Conclusion
When analyzing conversion rates in advertising, they always consider only those visitors who got to the site through the ad, without taking into account the rest of the traffic sources.
