Understanding Conversions in Advertising

In advertising the word ‘conversion’ gets thrown around a lot.

A “conversion” occurs when someone takes an action that we want them to take—like buying a product, signing up for a newsletter, or booking an appointment.

Think of it this way: Imagine you’re running a lemonade stand. You put up a sign to catch people’s attention. Every time someone sees your sign, stops, and buys a cup of lemonade, that’s a conversion. They’ve gone from just seeing your stand to taking an action you wanted—making a purchase.

In digital advertising, conversions can look a bit different. They could be someone clicking on your ad, filling out a form, or completing a purchase. Tracking conversions is important because it helps us see which ads are working best to turn interest into action.

Not every ad leads to an immediate conversion. Sometimes, people might see an ad, think about it, and come back later to buy or sign up (this is called an attribution).

Even if we can’t always see every step, understanding conversions helps us optimise our ads to better reach our goals.

In short, conversions let us know that our ads are doing their job by turning curious viewers into engaged customers.

Why It Matters:

Conversions are essential in advertising because they provide real, measurable results, showing us when our ads are effectively driving action, like purchases or page visits, which indicates that our message is connecting with the audience.

Conversions help us understand which ads, platforms (Meta or Google), or strategies work best, allowing us to focus resources on what’s most effective and adjust what isn’t.

Conversions also help us gauge return on investment (ROI), ensuring that our ad spend is generating value by reaching people likely to become customers.

Additionally, tracking conversion trends offers insights into audience behaviour, allowing us to refine our approach to better resonate with our target audience.