What does "Conversion" mean?

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Conversion is a term used in marketing and advertising to describe when a potential customer takes a desired action, such as making a purchase, signing up for a newsletter, or clicking on an ad. The main goal for businesses is to encourage as many people as possible to convert.

In the context of online ads, conversion rates (CVR) measure how often people take these actions after interacting with an ad. For example, if 100 people click on an ad and 10 of them make a purchase, the conversion rate would be 10%.

To improve conversion rates, companies often use various strategies to better understand customer behavior and preferences. This can include analyzing past data to see which ads are most effective. However, getting enough information can be tricky, as not all clicks lead to conversions.

By gathering data from different sources, businesses can create better advertising strategies that help them reach their goals while also ensuring that their predictions about conversions are as accurate as possible.