Conversion rate (CVR) in marketing: Meaning, formula and how it's calculated

What is conversion rate (CVR)?

CVR, or conversion rate, in in-app advertising is the percentage of users who saw an app-install ad, clicked on it, and converted through some pre-specified action. CVR tells app advertisers how well their ad converted users.

However, the act of ‘conversion’ varies depending on the pricing model - in cost per install campaigns, for example, conversion is measured by app installs, while in cost per engagement campaigns, conversion is measured by engagement events.

What is CVR in marketing?

The CVR formula is calculated by dividing the number of users who converted by the number of users who clicked on the ad, and then multiplying by 100.

For example, if 1000 users saw an ad, and 15 users installed the advertised app, then the conversion rate would be 1.5% - meaning the ad converted 1.5% of users.

CVR = (# of users who took action / # of users who clicked on the ad) x 100

CVR is an important metric in marketing for measuring ad performance, indicating how well an ad converts users. This metric is typically used in performance campaigns.

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