How is a conversion rate defined?

Number of impressions + Number of conversions as a %

Number of conversions + Number of clicks as a %

Number of clicks + Number of conversions as a %

Number of clicks = Number of impressions as a %


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How is a conversion rate defined?


Explanation: The selected answer option is **correct** because a **conversion rate** is defined as the **number of conversions divided by the number of clicks, expressed as a percentage**. This metric measures the effectiveness of an ad or campaign in turning clicks into desired actions, such as purchases, sign-ups, or other conversions. The conversion rate helps advertisers understand how well their traffic is being converted into meaningful outcomes. It is calculated by taking the number of conversions (the desired actions taken by users) and dividing it by the number of clicks on the ad, then multiplying by 100 to express it as a percentage. A higher conversion rate indicates that a higher proportion of clicks are leading to conversions, making it a key indicator of campaign efficiency.

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