Conversion refers to the process of marketing targets converting into customers. A site’s conversion rate is the percentage of visitors that do more than take a glance at it.
Depending on a website’s desired effect, what site owners define as a conversion may vary. If a video ad is designed to encourage viewers to buy products from a given website, successful conversions occur when viewers become paying customers. If there’s a banner ad for a news site or humor blog, successful conversions occur when that ad’s viewers become regular readers. For sites that rely heavily on income from advertisers, successful conversions occur when their readership increases and their sites generate more adclicks.
Measuring conversions is the most effective way to determine how successful an internet marketing campaign is, particularly for advertising that relies on a pay per click model. Without knowing how many ad viewers eventually generate income for the advertiser, it is impossible to know if a campaign is operating at a loss.