The share of visits, clicks or people who take the action you want, such as buying. In Google Ads it is conversions divided by ad interactions.
Formula
Conversion rate = conversions ÷ visits (or clicks) × 100
Example
Meera's ads bring 10,000 sessions to her website in a month and 200 of them end in a purchase. Her conversion rate is 200 ÷ 10,000 = 2%.
How you'll hear it
“Conversion rate on the new product page is 2.5%, up from 2%, so the same ad spend should bring 50 more orders.”
What it helps you decide
Whether to work on the website and offer (CRO) or on the traffic. Because conversion rate multiplies with traffic, a small rise at the same spend can matter more than a cheaper click.
Where people misread it
People celebrate a higher conversion rate without checking the number of orders. Cutting broad campaigns sends only warm visitors, which lifts the rate while total sales and profit fall.
The story
In September, Meera cut her broad prospecting campaigns and kept only retargeting and brand search. Her conversion rate doubled from 2% to 4%. The freelancer called it the best month for the website.
| Ad spend | ₹1,00,000 |
| Sessions | 10,000 |
| Orders (2%) | 200 |
| Sales at ₹2,000 per order | ₹4,00,000 |
| Clothes (30%) | −₹1,20,000 |
| Ad spend | −₹1,00,000 |
| Left towards fixed costs | +₹1,80,000 |
|---|
| Ad spend | ₹60,000 |
| Sessions | 4,000 |
| Orders (4%) | 160 |
| Sales at ₹2,000 per order | ₹3,20,000 |
| Clothes (30%) | −₹96,000 |
| Ad spend | −₹60,000 |
| Left towards fixed costs | +₹1,64,000 |
|---|
The rate doubled because she removed the people least likely to buy. Fewer orders, ₹16,000 less towards rent, and fewer new customers for next year.
A rate tells you about the mix of visitors as much as about the website. When it moves, check orders, sales and money left over, and whether traffic changed.
All figures are illustrative.
What your conversion rate is worth
The example's numbers are filled in. Replace them with yours.
This assumes traffic stays the same. If the rate rises because traffic fell, compare orders and profit, not the rate.
Don't confuse it with
- CTR: the share of people who click the ad, which happens before the visit.
- Bounce rate: the share of sessions that were not engaged, which is about attention, not purchase.
Related terms
Want to use this at work? AI-led PPC Excellence is aFactor's 16-week program for paid ads.
Sources
- Conversion rate: Definition, Google Ads Help
- Return on Ad Spend: How To Calculate Your ROAS, Shopify, 2026