Conversion Rate
The percentage of people who take a desired action — like buying or signing up — out of everyone who had the chance to.
Definition
Conversion rate is the number of people who completed a goal action divided by the total number who could have, expressed as a percentage. If 1,000 people visit a landing page and 30 buy, the conversion rate is 3%. The 'conversion' is whatever action you're optimizing for.
Why it matters
Conversion rate connects traffic to results. You can have a great CTR but a poor conversion rate if the landing page or offer doesn't deliver — so it's read alongside CTR and CPA to see where a funnel is leaking.
How it applies to UGC ads
Ad creative shapes expectations before the click — a UGC ad that clearly communicates the product tends to send more qualified, ready-to-act visitors. Aligning the ad's message with the landing page is a common way to protect conversion rate.
Related terms
CTR (Click-Through Rate)
The percentage of people who click an ad out of everyone who saw it — clicks divided by impressions.
ReadCPA (Cost Per Acquisition)
The average amount you spend on ads to get one conversion, such as a purchase or sign-up.
ReadROAS (Return On Ad Spend)
Revenue generated for every dollar spent on advertising — total ad-driven revenue divided by ad spend.
ReadCall to Action (CTA)
The explicit prompt that tells a viewer what to do next, such as 'Shop now', 'Learn more', or 'Sign up'.
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