Ad glossary
Conversion rate (CVR)
The percentage of visitors or clicks that complete a desired action, such as a purchase, out of the total who had the chance.
Conversion rate, often shortened to CVR, is the percentage of people who complete a target action after arriving at a page or clicking an ad. For an online store, that action is usually a purchase, but conversion rate can also be measured for add-to-carts, email sign-ups or any other step in the marketing funnel.
How to calculate it
Conversion rate = (conversions ÷ visitors or clicks) × 100
Worked example (made-up numbers): a landing page receives 2,000 visitors from ads and records 50 purchases. Conversion rate = (50 ÷ 2,000) × 100 = 2.5%.
Be clear about the denominator. Ads Manager typically reports conversions against link clicks, while store analytics often use sessions. The two numbers will not match, so compare like with like.
Why it matters
Conversion rate links your ad metrics to your revenue. With the same traffic cost, a higher conversion rate means a lower CPA:
- At a $1 CPC and a 2% conversion rate, each sale costs $50 in ads.
- At the same CPC and a 4% conversion rate, each sale costs $25.
Common levers
- A tighter match between the ad's promise and the page's headline.
- Clear pricing, delivery information and returns policy on the product detail page.
- Social proof such as reviews and customer photos.
- Faster page load and a simpler checkout, especially on mobile.
Last reviewed Oct 27, 2026