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Understanding the difference between impressions, clicks and conversions means in Adsense or other Advertising Network

                               
Impressions, Clicks and Conversions – Some Basic Definitions

Impressions – This is where all of online advertising begins, and likely where you’ll see the highest numbers because an impression is generated every time a web page is loaded and viewed. Keep in mind that just because the ad was displayed doesn’t mean that the visitor intentionally read it or even paid any attention to it; the term “impression” simply means that the ad was displayed on the page.

It’s no different than when you’re driving by a large billboard on the side of the highway; the ad is being displayed on the billboard non-stop, but that doesn’t mean that you read it or even took notice of it. In a sense, every car that drives by would represent an “impression,” because the potential for the ad to be viewed is there, but there is no guarantee that every driver who passes by will read the ad on the billboard. 

Clicks – Clicks can seem like the most important step in the online advertising process, because a click represents an interested visitor. In fact, most online advertising programs (including Google AdWords) use clicks as the basis for their pricing structure.

The most common scenario that takes place when a visitor clicks an ad is that they’re taken to the advertiser’s website, where hopefully a sale is made or a lead is captured. When it comes to clicks in relation to impressions, bear in mind that an impression is required to generate a click, but since not every person who views an ad will click on it, you will always have more impressions than clicks.This ratio of clicks to impressions is measured by what’s known as the click-through rate (CTR).

Click-Through Rate Formula The click-through rate is the ratio between the number of users who click on a link and the number of users viewing the page the link is on. Mathematically, it can be expressed using the following formula:


if your ad received 1,000 impressions and 25 clicks, you would have a 2.5% CTR. The general rule is that an ad with a high CTR is effective at grabbing a visitor’s attention, while a low-CTR ad means that you may need to tweak something about the ad text or the accompanying image (if allowed) to hopefully garner more clicks. 

Conversions – The ultimate goal of every advertiser is to generate conversions, because that means that the intention for the ad has been achieved. This could be in the form of making a sale, capturing a lead, having a visitor download a free ebook or whitepaper, etc. Although the term “conversion” covers a broad range of actions, you can measure the effectiveness of virtually any campaign by how many conversions are received in light of the total number of dollars spent. This will determine your return on investment (ROI). 

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2 comments

  1. Thank you for useful content
  2. Thank you for useful content