Which metric indicates the percentage of ad clicks that result in a sale?

• A. Click-Through Rate
• B. Cost Per Click
• C. Conversion Rate
• D. Impressions

Answer: (C)

Conversion rate shows the percentage of ad clicks that result in a sale. It measures how effectively clicks turn into the desired action, like a purchase. You calculate it by dividing the number of conversions (sales) by the number of clicks, then multiplying by 100 to get a percent. For example, 100 clicks with 5 sales gives a conversion rate of 5%.

Other metrics describe different parts of the funnel: click-through rate looks at how often an impression leads to a click, cost per click shows the price you pay for each click, and impressions count how many times the ad was shown. A high number of impressions or a high click-through rate doesn’t guarantee sales, which is why conversion rate is the right measure for this question.