Published: 01.28.2022


Conversion Rate

Conversion Rate is the percentage of consumers who completed a desired action. A conversion rate is calculated by dividing the total number of users or consumers who “converted” or completed a desired call to action by the overall size of an audience. As an example, if Bank of America runs an ad on Instagram that is seen by 20,000 people and 200 of those people click on the ad, the conversion rate would be 200 divided by 20,000, for a conversion rate of .01 or 1%. Having that information can inform a marketer how certain ads perform compared to others. The conversion rate ultimately measures how good (or bad) a marketing effort is at getting someone to perform an action.