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Conversion Definition
In advertising, a conversion refers to any desired user action that fulfills a campaign goal, such as purchases, sign-ups, downloads, or inquiries. Conversions are key performance indicators used to measure campaign effectiveness and return on investment.
How Conversion Works
- Advertisers define conversion goals based on business objectives.
- Tracking tools monitor user actions (e.g., purchases, leads).
- Data reveals conversion rates and sources.
- Strategies are adjusted to improve conversion performance.
Example of Conversion
An e-commerce campaign tracks purchases as conversions when users complete checkout.
Why Conversion Matters in Advertising
- Indicates campaign success and goal completion
- Guides optimization for better performance and profitability
- Enables ROI calculation and budget adjustments
- Drives measurable business outcomes from advertising efforts
