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Newbiee: help about the "convertion" term (CTR%, CR%...) please!

Discussion in 'Making Money' started by roulettizer, Mar 5, 2013.

  1. roulettizer

    roulettizer Newbie

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    Hi guys,
    I need to know the exact meaning of the "convertion" term.

    I know CTR, which means that per X impresions of a said ad, we got Y clicks.
    So ( clicks / impresions ) * 100 = CTR %.

    But often here I read, "this site doesn't convert well", "this network has a low conversion rate" or "to high conversion on this..."...

    As far as I know, the conversion rate on a campaing, strictly refers to the fact that you've invest some bucks on some ads from some network (i.e.: AdSense) and that whatever is the place where you've putted'em (lets say a "random" landing page), you're getting some clicks on those precisely ads.

    And so you've created those ads to achieve something (i.e.: sell something on site, membershipping, oppting-in...) and from all those received clicks, only few do what you expected'em to do (lets say, buying the thing, i.e.). So following the same CTR idea, you got:

    ( taking-action clicks / # clicks on ad (strictly PPC?) ) * 100 = CR %.

    Is this even true?
    And so if it is, why everyone talks about "this thing doesn't convert"?
    What exaclty something like this refers about?

    Thanks you all so much.

    Newbiee here... ^^
     
  2. roulettizer

    roulettizer Newbie

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    Up, please!