What is Conversion Rate?
The percentage of visitors who complete a desired action.
Definition
Conversion rate measures how effectively your ad, landing page, or email turns visitors into customers (or leads). It's calculated by dividing conversions by total visitors. E-commerce landing pages average a 2-4% conversion rate, while highly optimized pages can hit 8-12%. Improving conversion rate often delivers more revenue than increasing traffic because you're extracting more value from existing ad spend.
Example
A landing page receives 2,000 visitors and generates 80 purchases — a 4% conversion rate. After adding social proof and simplifying the checkout, conversion rate rises to 5.5%, adding 30 more sales with no additional ad spend.
Related Terms
Put this into practice
Access thousands of ready-to-use ad templates that implement conversion rate best practices. Customize any template in seconds.
Start Your Free Trial