What is Conversion Rate? – Formula and Ways to Increase Conversion Rate [With Examples]

What is conversion rate on Facebook ads?

Conversion rate is a metric used to measure the percentage of ad viewers who converted from your Facebook ad. In simple words, the percentage of visitors who took the desired action from your ad.

Conversions might be different goals like – purchase, sign up, downloads, book a slot, etc. This metric is used to measure the success of a Facebook ad.

How to calculate FB conversion rate?

To calculate the conversion rate of your Facebook ad, divide the ‘number of conversions’ by the ‘number of website or landing page visitors’. Now, multiply that number by 100 to get the conversion rate in percentage.

You can track your conversion rate on Facebook Ads Manager, based on various goals.

Formula for calculating FB conversion rate

FB ads conversion rate formula
FB Ads Conversion Rate Formula

Real-life example of FB conversion rate

Look at an example of conversion rate: 

Let’s say you are running a FB ad to make people sign up for your paid newsletter. Say, 50 people visited your sign-up page, and out of those, 2 users successfully signed up for it.

Then, your conversion rate will be: 2/50 x 100 = 4%

What’s considered a good FB conversion rate? (benchmark)

A good conversion rate for Facebook ads is between 9% - 10%. It’s best if your conversion rate goes more than 10%.

According to Wordstream’s Facebook Ad benchmarks, the average conversion rate for paid Facebook ads across all industries is 9.21%.

Facebook Ads Conversion benchmark
Facebook Ads Conversion benchmark. Source: Wordstream

The above infographic reveals that the Fitness industry boasts the highest conversion rate (14.29%), while technology, travel, and retail are among the lowest. 

While beating the average industry benchmark might be difficult, companies should focus on improving their current conversion rates.

Ways to increase your conversion rate

  • Use eye-catching visuals: It takes only 2.6 seconds for a user’s eye to choose where to land on a webpage. So, using compelling visuals increases the chance of the users landing and stopping on your ad.
  • Craft crisp and strong copy: Keep your ad copy short as too much text can be intimidating for the user. But make sure to craft a strong and persuasive ad copy to draw them to your website. Learn more about: Best Practices to Craft a PPC Copy.
  • Build high-converting landing page: Advertisers often put all their energy into ads but the ball drops when it comes to landing pages. Your landing page plays a crucial role in your ad success as this is where your target audience will be directed after clicking the link on your ad. Check out the best practices for a high converting landing page.

Also Read: Related Metrics

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