Management Notes

Reference Notes for Management

Which statistic indicates how often a click has led to a conversion?

Which statistic indicates how often a click has led to a conversion?

Options :

a) Cost Per Conversion

b) Click Through Rate (CTR)

c) Conversion Rate (CVR)

d) Converted clicks

 

Explanation

 

Cost Per Conversion

The full form of CPC is Cost per conversion which is a term used in Web analytics and online advertising to refer to the total cost paid for an advertisement in relation to the success in achieving the goal of that advertisement. Cost per conversion is calculated by taking how much money is spent on an ad campaign, divided by the number of conversions (customers) over the same period.

CPC can be calculated as,

Cost per conversion = Total cost of ads/Number of conversions

 

Click Through Rate (CTR)

The full form of CTR is Click-through rate which refers to the ratio of the number of users exposed to a specific link on a website page or in an email who click the link and view the product and services that are advertised. It is a ratio showing how often people who see your ad or free product listing end up clicking it.

CTR can be used to understand the performance of the ads and keywords. If you are having a high CTR then it indicates that the users are finding your ads and listings relevant and useful. Note that a good CTR is relative to what you’re advertising and on which networks.

CTR can be calculated by,

Click Through Rate (CTR) = Total Impressions /Total Clicks

 

Conversion Rate

The full form of CVR is Conversion Rate which is one of the Conversion Metrics used in the field of digital marketing which measures how many website visitors actually gets converted into leads or sales.

CVR can be calculated as,

Conversion Rate (CVR)= Number of Conversions/ Total Number of Visitors

 

 

The correct answer is Option C.

 

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