TypePlatform

What is a conversion?

What a conversion is, why it matters, and the key terms you'll see in your reports: CPA, ROAS and CTR.

A conversion is an action you want people to take after seeing your ad, such as buying something, filling in an enquiry form, booking a call or signing up.

Why conversions matter

  • They show whether your ads are actually working, not just getting clicks.
  • Ad platforms use conversion data to find more people likely to take the same action, so campaigns improve over time.

Common terms you'll see

  • Conversion rate: the percentage of clicks that become conversions.
  • CPA (cost per acquisition): your spend divided by conversions. What each result cost you.
  • ROAS (return on ad spend): revenue from your ads divided by what you spent. A ROAS of 4x means £4 back for every £1 spent.
  • CTR (click-through rate): the percentage of people who saw your ad and clicked it.

How conversions are tracked

Each platform needs its tracking tag on your website to record conversions. See Tracking 101 and Adding tracking tags to your website.

Read more: Google's guide, About conversion tracking.

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