A conversion in digital advertising signifies a desired action completed by a user after engaging with an ad.
This action can range from purchasing a product to subscribing to a newsletter. Conversions measure an ad's effectiveness in driving desired outcomes.
Conversion Types:
- Click-through conversion (CTC): Occurs directly after a click.
- Assisted click conversion (ACC): Influenced by a click, but conversion happens later.
- View-through conversion (VTC): Happens after viewing an ad without clicking.
Key Metrics:
Cost per conversion (CPC):
- Expense per conversion achieved.
- Conversion rate (CR): Percentage of interactions leading to conversions.
- Return on investment (ROI): Profitability of advertising efforts.