What is the difference between Click-Through Rate and Conversion Rate in a search campaign?

What is the difference between Click-Through Rate and Conversion Rate in a search campaign?

• A. CTR = clicks / impressions; CVR = conversions / clicks; CTR measures ad engagement, CVR measures how effectively clicks convert.
• B. CTR and CVR are the same metric.
• C. Campaign type determines CTR.
• D. CVR is the rate of impressions.

Answer: (A)

CTR and CVR capture different stages of how users interact with a search ad. CTR is the ratio of clicks to impressions, so it shows how often people click after seeing the ad. CVR is the ratio of conversions to clicks, indicating how many of those clicks actually lead to a conversion. In other words, CTR tells you about ad engagement, while CVR tells you about the effectiveness of the click in driving a desired action. For example, if an ad receives 1,000 impressions and 50 clicks, the CTR is 5%. If those 50 clicks result in 5 conversions, the CVR is 10% (5 conversions divided by 50 clicks). This means you attracted clicks, but a portion didn’t convert, pointing to post-click factors like the landing page or offer. The other statements aren’t correct because CTR and CVR are distinct metrics with different purposes, campaign type doesn’t determine CTR in isolation, and CVR is not the rate of impressions (it uses clicks as the base).

CTR and CVR capture different stages of how users interact with a search ad. CTR is the ratio of clicks to impressions, so it shows how often people click after seeing the ad. CVR is the ratio of conversions to clicks, indicating how many of those clicks actually lead to a conversion. In other words, CTR tells you about ad engagement, while CVR tells you about the effectiveness of the click in driving a desired action.

For example, if an ad receives 1,000 impressions and 50 clicks, the CTR is 5%. If those 50 clicks result in 5 conversions, the CVR is 10% (5 conversions divided by 50 clicks). This means you attracted clicks, but a portion didn’t convert, pointing to post-click factors like the landing page or offer.

The other statements aren’t correct because CTR and CVR are distinct metrics with different purposes, campaign type doesn’t determine CTR in isolation, and CVR is not the rate of impressions (it uses clicks as the base).