Conversion rate (CVR or CR) measures the percentage of visitors who took a desired action on a website after clicking through an ad or link, such as purchasing something or filling out a form.
In contrast, click-through rate (CTR) refers to the percentage of people who clicked on a particular link or ad out of the total number of people who viewed it.
Both CTR and CVR are essential metrics in digital marketing.
CTR is an indicator of how well an ad or link is performing in terms of generating interest and driving traffic to a website.
CVR measures how effectively a website converts visitors into customers or achieves other goals, such as subscribing to a newsletter or downloading an eBook.
Divide the number of clicks by impressions (views) to calculate CTR. For example, if an ad received 100 views and five clicks, the CTR would be 5%.
To calculate CVR, divide the number of conversions by the total number of clicks. For instance, if ten people purchased your product after clicking through an ad that received 100 clicks, the CVR would be 10%.
Businesses should measure CTR and CVR as they provide different insights into campaign performance.
Ways to improve CTR include:
• Optimizing headlines and descriptions to make them more compelling and relevant to target audiences
• Testing different ad formats, such as image-based ads versus text-based ads.
• Using eye-catching visuals
• Targeting specific keywords and demographics
• Improving landing page experience
Ways to improve CVR include:
• Simplifying forms
• Adding trust signals like customer reviews or security badges
• Make it easy for users to navigate through product pages
• Offer incentives like discounts or free trials
• Provide clear calls-to-action (CTAs)
• Reduce page load times
