What is a Conversion Rate (CVR) in Mobile Marketing?

What is an example of a conversion rate (CVR)?

Let’s say you’re running a mobile app campaign, and your goal is to drive app installs. You define an app install as your conversion event. Now, imagine that 1,000 people click on your campaign link each day, and 50 of them go on to install the app. Your conversion rate is calculated as the total conversions (i.e., the total number of people who installed the app) divided by the total audience. In this case, it would be 50 / 1,000 = 5%.

How do marketers use conversion rate (CVR)?

First, marketers use conversion rate to assess whether the conversion process is clear and easy to complete. Using the example above, if the "Install App" button on your campaign page only works half the time, your conversion rate will be much lower than expected. Identifying this issue allows you to optimize and make changes, such as fixing technical issues or simplifying the process, to improve the conversion rate for your app.

Secondly, marketers use conversion rate to evaluate the effectiveness of different campaigns and target audiences. For instance, if you’re running 20 campaigns targeting 20 different customer profiles, you can compare the conversion rates across campaigns. By focusing on the campaigns with the highest conversion rates, you can allocate your resources more effectively, optimize costs, and ultimately increase the overall ROI for your mobile app campaign.

What is a good conversion rate (CVR) in mobile marketing?

In mobile marketing, it is the industry standard to consider conversion rate to be the ratio between the desired result of a campaign and the number of clicks on your campaign. So if you run a CPI (cost per install) campaign, your conversion rate will be the installs divided by all the clicks. If you run a CPA (cost per action) campaign, the conversion rate will be the total actions performed divided by the number of clicks.

How is conversion rate (CVR) calculated in Tenjin?

At Tenjin, we use the number of clicks in the conversion rate, instead of the number of impressions for a better breakdown of the performance of your campaigns as another KPI, since the CTR (Clickthrough Rate) already measures the impression to click ratio.