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

roulettizer

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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... ^^
 
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