Have you ever wondered what a conversion rate, or CVR, means in the context of marketing, advertising, or mobile apps? It’s a crucial metric that determines the effectiveness of your campaigns and strategies.
Whether you’re just starting out or you’re an industry professional, understanding the CVR metric is key.
In this article, we’ll explore conversion rate definition, explain how to calculate it, and introduce our custom conversion rate calculator to simplify the process.
What Is a Conversion Rate: Definition in Advertising
A conversion rate in advertising refers to the percentage of people who respond to an ad by taking a specific action.
This action varies widely, from clicking a link, making a purchase, installing an app to filling out a form. It represents the effectiveness of an advertisement in converting viewers into active users or customers.
What Is Conversion Rate in Marketing?
It’s important to note that in marketing, the concept of a conversion rate extends beyond just ads.
It can also refer to various user actions like visits to a website, sign-ups for a newsletter, or any other measurable response to a marketing initiative.
Essentially, the CVR metric captures the effectiveness of an advertisement in converting viewers into active users or customers, and in a broader marketing context, it reflects how well marketing efforts are driving the desired user actions.
Is Conversion Rate a KPI?
Yes, conversion rate is indeed a key performance indicator (KPI) for mobile businesses of all types.
It’s a crucial measure that helps businesses understand how effectively their mobile apps, websites, or advertising campaigns are achieving specific goals.
By tracking the conversions KPI, companies can gauge the success of their mobile strategies and make informed decisions to optimize their user experience, marketing efforts, and ultimately, their revenue generation.
Conversion Rate Formula
Conversion rate (CVR) =
Total number of users who performed an action / ad audience * 100
Keep in mind that you can change the “ad audience” metric to fit your specific needs. For example, instead of an ad audience, you can divide by the total number of users who saw an ad, clicked an ad, or even the total number of website visitors.
Conversion Rate Calculator
How to Calculate Conversion Rate?
You can use the calculator above to easily calculate the conversion rate.
It helps you understand what percentage of your audience takes the desired action after interacting with your ad or visiting your site. The results are multiplied by 100, making the conversion rate a percentage. This format is easier to interpret and compare.
Let’s illustrate how to calculate conversion rate and the different ways to use our calculator with some examples:
1. CVR Example 1: Online Retail Store
Imagine you run an online store. In one month, your ad campaign reaches 20,000 users, and 500 of them end up making a purchase.
Using the formula, CVR = (500 / 20,000) * 100, your CVR is 2.5%.
2. CVR Example 2: Mobile App Downloads
Say you’re promoting a mobile app or game. Your ad is seen or clicked by 10,000 users, and 300 users download the app.
Here, CVR = (300 / 10,000) * 100, resulting in a CVR of 3%.
3. CVR Example 3: Newsletter Sign-ups for a Tech Blog
Consider a tech blog that runs an ad campaign to increase newsletter sign-ups. In a given period, 15,000 users interact with the ad, and 450 sign up for the newsletter.
The CVR calculation would be CVR = (450 / 15,000) * 100, which equals a CVR of 3%.
What Is Conversion Rate Optimization?
Conversion rate optimization (CRO) is the process of enhancing your website, app, or advertising campaigns to increase the percentage of users who perform the desired action.
It involves understanding what drives and persuades your users.
This process can include making changes to your web design, improving the user experience, tweaking ad copy, or adjusting the overall marketing strategy.
The goal is to make your digital assets more effective at converting visitors into active customers or users.
Udonis: Conversion Rate Optimization Agency
If you’re looking to boost conversion rates for your mobile business, especially if you’re in the mobile apps or games sector, Udonis could be the partner you need.
As a conversion rate optimization agency, we specialize in boosting CVR through targeted mobile marketing and user acquisition campaigns.
If you’re ready to enhance your conversion rates, feel free to contact us. Let’s work together to reach your KPIs.