What is Conversion Rate (CVR)?

The percentage of users who complete a desired action after clicking on an ad, measuring campaign effectiveness.

Conversion Rate (CVR) measures the percentage of users who complete a desired action (conversion) after clicking on an advertisement. Conversions can include app installs, purchases, sign-ups, or any other valuable user action. CVR is a key performance indicator that shows how effectively ads drive meaningful user behavior beyond just clicks.

Why It Matters

CVR indicates the quality of traffic and ad creative effectiveness. High CVR suggests ads are reaching the right audience with compelling messaging, while low CVR may indicate targeting issues or poor user experience. CVR directly impacts campaign ROI and cost efficiency, making it essential for optimization decisions.

How to Calculate

CVR = (Number of Conversions ÷ Number of Clicks) × 100. For example, if an ad received 1,000 clicks and generated 50 app installs, the CVR would be (50 ÷ 1,000) × 100 = 5%.

Industry Benchmarks

Best Practices

Optimize landing pages to match ad creative messaging and reduce friction. Use A/B testing to improve ad creatives and targeting. Ensure fast page load times and mobile optimization. Track micro-conversions alongside macro-conversions to understand the full funnel performance.

Examples

A gaming app improves CVR from 12% to 28% by testing playable ad creatives that better represent actual gameplay. An e-commerce app increases CVR from 3% to 7% by optimizing checkout flow and reducing required form fields.

Notes

CVR varies significantly by traffic source, device type, geography, and time of day. Install-to-open rates and day-1 retention should be monitored alongside CVR for mobile apps to ensure quality conversions. Attribution windows affect CVR calculation - typical windows range from 1-day to 7-days.