Definition of Cost per Conversion

The cost per conversion refers to the cost for the website owner of converting traffic into the desired action. The desired action is also referred to as a successful conversion. Depending on the nature of the website, the desired action or successful conversion can involve a newsletter subscription, a membership registration, a software download, the purchase of a product, or some other action. The cost per conversion is the actual cost that the website has incurred over the viewing time of visitors divided by the number of successful conversions that occurred due to the clicks that were made.

The cost per conversion is used as a barometer of the successfulness of the website including its marketing techniques and advertising practices. This data can be used to troubleshoot poor performance and improve the performance of the website. Analyzing conversion statistics such as the rate of conversion is essential to the determination of the website’s return on its investment.

External links:

• Google Adwords Learning Centre with information on ROI