What is a conversion? What is a transaction?Cost per action (CPA) is a measurement for ad effectiveness. This method is ideal for advertisers since it only count performance that would directly impact ROI of an ad campaign.
ConversionA click-through conversion occurs when an ad click leads directly to a valuable user-action such as a purchase, sign-up, registration, lead, or view of a key page. Conversion rate measures the effectiveness of unique clicks. The formula is
Conversion Rate = Conversions ÷ Unique Clicks.
A view-through conversion occurs when an ad view leads directly to a valuable user-action such as a purchase, sign-up, registration, lead, or view of a key page. Conversion rate measures the effectiveness of unique impressions. The formula is
Conversion Rate = Conversions ÷ Unique Impressions
TransactionA transaction is recorded on every invocation to the conversion tracking code. Essentially, a visitor can make multiple transactions but only a single conversion.
ExamplesA visitor clicked on ad FashionPromo on May 1st. She purchased a $100 purse on May 10 at the advertiser's website. Next day, May 11, she bought a dress for $200. Conversion stats would report one conversion and two transactions for May 1st for a total value of $300.
A visitor viewed ad SportTicket on November 1st but did not click on it. He then remembered the ad offer later that week and visited the advertiser's website directly. He purchased a $50 ticket on November 10. Conversion stats will report one view-through conversion and one transactions for November 1st for a total value of $50.
Other Articles in Conversion
Cannot find an answer for your question? Ask our Customer Care team
- What is conversion tracking?
"Advertisers want to know the effectiveness of their advertising campaigns. It often takes many impressions/views to get a click. However, ..."
- How can I track conversions?
"To track conversions, an advertiser needs to put a short piece of conversion tracking code (HTML code) generated by our ..."
- Ad Spend Reporting
"As an advertising agency, or an advertiser, you want to know how much you are spending on your media buy ..."in For Agencies
- Ad Tracking
"Our system can track ad impressions, clicks, conversions and custom events. Impressions An impression beacon is an invisible image used ..."
- Ad Budget and Ad Rates
"An ad can have a budget and ad rates. These settings are optional because they depend on your specific advertising ..."