What is a Conversion

By | 8 April, 2014

If you came across this term in context of digital marketing, you might want to know what is a conversion. Conversion, simply put, is a sale. When you show an ad to an audience and one of them purchases, we call it a conversion.

However, the definition of conversion in digital marketing is not restricted to just a sale! Think about it, you show an ad to sell a pair of earphones, after spending some amount of money, you notice you’ve made a sale (or a conversion!). Now you make another ad, this ad asks the audience to sign up for a free trial of a new car in the market. After spending some money, you notice that one person just signed up for the trial – a conversion – since one instance of the objective of your ad has been completed! Technically, you have not sold the car. Hence, we understand that the definition of conversion changes according to the objective of the ad.

If an ad requires the user to make a purchase, then a purchase is treated as a conversion. If a user is supposed to sign up at the website, then the signup is treated as a conversion. There could be other examples of conversions.

In digital marketing, most conversions revolve around making a sale or generating a sign up (lead). These leads are then marketed to via email to finally make them purchase the product being sold. I hope this explanation on what is a conversion was easy to understand.