What Does Conversion Rate Mean in Google Ads?

BySDM Help

Conversion Rate in a Google Ads context refers to the percentage of ad interactions (usually clicks) that result in a desired action, such as a purchase, form submission, phone call, or any other goal you’ve defined as a “conversion” in your Google Ads account.

How Is It Calculated?

Example from your report:

For the “Personal Care – PE” ad group:

  • Clicks: 25
  • Conversions: 1

Conversion Rate=(125)×100=4%\text{Conversion Rate} = \left( \frac{1}{25} \right) \times 100 = 4\%Conversion Rate=(251​)×100=4%

For “Overnight & Respite Care – PE”:

  • Clicks: 94
  • Conversions: 1

Why Is Conversion Rate Important?

  • Effectiveness Indicator: It tells you how well your ad and landing page are persuading users to take the desired action.
  • Optimization Insight: Low conversion rates might indicate a mismatch between your keywords, ad copy, and landing page experience.
  • Cost Efficiency: A higher conversion rate means you’re getting more value from your ad spend.

What Can Affect Conversion Rate?

  • Ad Relevance
  • Landing Page Experience
  • Targeting Accuracy
  • Offer Attractiveness
  • Load Time and Mobile Usability

Recommendations Based on Your Data

Ad GroupConversion RatePotential Action
Personal Care – PE4%Performing well, consider increasing budget or scaling keywords.
Overnight & Respite Care – PE1.06%Review ad copy and landing page; ensure messaging and offer align.