To learn how often an ad click or other ad interaction leads to a conversion, on average, what metric would you use?

1. You’d use conversion value-per-click.
2. You’d use conversion value-per-cost.
3. You’d use cost-per-conversion.
4. You’d use conversion rate.

Correct Answer:

• You’d use conversion rate.

Explanation: Conversion rate is a key metric in digital marketing that provides insights into the effectiveness of an ad campaign. It is calculated by dividing the number of conversions by the total number of interactions (such as ad clicks) and then multiplying the result by 100 to get a percentage. In other words, the conversion rate reveals how often, on average, an ad interaction like a click leads to a desired outcome or ‘conversion’ (e.g., a purchase, a signup). A higher conversion rate signifies a more successful ad campaign, with more users completing the desired action.