Conversion
A conversion is any valuable action a user completes after seeing or clicking an ad, such as a purchase, signup, lead, or app install.
A conversion is any valuable action a user completes after seeing or clicking an ad, defined by the advertiser as the campaign's goal. Common conversions include a purchase, a lead form submission, a free-trial signup, a newsletter subscription, an app install, or a phone call.
Conversions are the bridge between traffic and business value. Clicks and impressions cost money; conversions are what justify that spend. Because the definition is set by the advertiser, the same word can mean a $200 sale for one campaign and a free email opt-in for another.
How conversions are tracked#
A conversion is recorded when a user reaches a defined goal, usually fired by a conversion pixel placed on a thank-you or order-confirmation page, or via a server-to-server postback. The tracking system then attributes that conversion back to the click or impression that drove it, so the advertiser knows which ad, placement, and audience produced the result. This is the foundation of conversion tracking and all downstream performance reporting.
Why it matters#
Every cost-efficiency metric is built on conversions. They are the numerator in Conversion Rate (CVR) and the denominator in cost-per-acquisition math, so accurate conversion counting is essential. Misfiring pixels or broken attribution can make a profitable campaign look like a loser, or vice versa.
Related terms: Conversion Rate (CVR), Conversion Pixel, and Conversion Tracking.
