What exactly is a conversion?

[brucec]

I am reading about conversions and I do not know what they are. I know about CT's, CTR, and impressions, but can anybody please bring me up to date on conversions?

Thanks to everybody for their feedback,
Bruce

[PatrickDeese]

conversion means a visitor that becomes a buyer.

if you a trying to get people to subscribe to your free newsletter, a conversion would be a sign up.

if you were promoting a forum, a conversion would be a visitor that began posting.

etc.

typo correction

[edited by: PatrickDeese at 5:02 pm (utc) on June 2, 2004]

[brucec]

Thanks, PatrickDeese. That's what I thought, but was not 100% sure.

We just started our AdWords campaign today and we already got two conversions.

Pretty good!

[Sanenet]

By knowing your conversion rate you can come up with your ROI (return on investment), or how much money you're earning from your investment.

So: ROI = (profit per sale * conversion) - gross ad budget.

Easy to work out, and it's the bottom line, but amazing how many people don't bother to work it out.

[eWhisper]

Just don't forget its not always the highest ROI, but the best bottom line that matters.

[blaze]

Well, yes, but then you have to work in the other overhead, such as refunds, returns, support costs, etc.

Sometimes selling 5 widgets at 50$ profit each is better than selling 10 widgets at 30$ profit each.

[brucec]

All good points, you guys are the best!