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Importance of conversion rate in online ads

A good conversion rate is important to measure the success of each campen. Conversion rates are effective in comparing and checking performance of multiple advertising channels. 

Conversion rates are defined in a campaign by the percentage of people who clicked on the ad to complete and action are purchased. You can understand with an example if a person made a purchase after the ad clicked 10 times then the conversion rate is 10%.

If a particular product in a website is receiving a lot of traffic but the conversion rate is much lower than the rest of the product in the side so after understanding this problem we can do a conversion rate optimisation. This will bring attention to the product that is selling more on your website. Conversion rates are important to bring the profit in your sales.

Setting a ROI expectation

ROI means return of investment, it means if we are getting profit or loss from the particular campaign. By conversion rates we can calculate the amount of profit we are earning from ppc. Conversion rate setting up a limit on what we should expect a return of investment.

Identifying valuable customer

Sometimes paper clicks are seen on the advertisement printed in social networking sites but they don’t really purchase or install apps. We need to identify and funnel down the audience who is actually interested and will buy from our website. This will help us to improve quality according to the interested audience. 

Identifying area of efforts

If your website has a lot of traffic but the purchase or sales are not increasing. If the customer is visiting your website but is unable to find the right product. Conversion rate will spot issues like if the promotion of the website or product is happening fine or not. It also detects if there is any problem with your website coding or design(like users are having problems signing in or find the design not attractive and trustworthy to purchase their product). It highlights the areas where your business needs improvement.


Detecting loss and profit

Minor fluctuation in conversion rate will indicate loss or profit in business. The conversion rate differs from the type of industry to location of industry. A single conversion rate cannot define profit or loss. To earn a good conversion rate we should always optimize conversion rate regularly. Sometimes you don’t have time for conversion rate optimization. You can consider conversion rate optimization services to boost your revenue and sales.


Conversion rate is basically a defining number if your business is well off or not. A business should always consider getting a high conversion rate to earn profit and run their business smoothly. Checking the conversion rate of your business is a good habit. Conversion rate optimization will prevent your business or website from facing loss. If you don’t have time or resources for CRO then you can always take help from CRO services.


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