How is a conversion rate defined?
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Correct answer: Number of conversions + Number of clicks as a %.
Why this is the answer
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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