Promotion School: Advertising conversion
Briefly about what conversion is and how you can work with it, — he told in the framework of a series of articles “School of Promotion” Nikolay Marchenko, media buyer at Mobio.
Nikolay Marchenko
Advertising conversion is a cornerstone in the world of performance marketing.
Without this concept, it would be impossible in principle to talk about the effectiveness of advertising campaigns.
Conversion is any target action performed or an event that occurred: going to the app store, installing, registering, reaching a level, buying, and so on. Accordingly, this means that at each stage of the funnel inside the application, conversions will be different.
Usually, the percentage of clicks to the conversion itself is used to understand the effectiveness of an advertising campaign. For example, if you count the installation of an application for a conversion and assume that out of 1000 people who clicked, 40 installed the application, then the conversion percentage is 4%. In another way it is called CR (Conversion Rate).
CR = 40 installations / 1000 transitions * 100% = 4%
For events that occur after the application is installed, the percentage is calculated already from the number of installed applications.
Usually, such a percentage is sewn into KPIs (Key Performance Indicators). Initially, this percentage is taken from the indicators of organic traffic and is somewhat belittled, because the indicators of advertising traffic are always lower, and then this percentage is already known for sure after several purchases of traffic from different sources.
CR can quickly show inefficient sources or simple fraud. A high CTR (clickability index) and almost zero CR indicates that there are a lot of bots on the site and you should either completely disable the source, or get ready to spend money on collecting black and white lists.
With a positive indicator, CR always dominates CTR. Even if the CTR is abnormally low, but the cost of conversion suits, then it is better not to disable the advertising campaign.
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