Definition: Conversion rate is the percentage of people who completed a goal, such as a purchase, sign-up or download, out of everyone who clicked or visited from a given source.
Also called: CVR, social conversion rate
Updated October 11, 2026
Conversion rate = conversions ÷ clicks (or visits) × 100A conversion is whatever action you decide counts: an order, a demo request, a newsletter sign-up, an app install. Google Ads, for instance, defines conversion rate as the average number of conversions per ad interaction, shown as a percentage, per its help centre. Pick one main conversion per campaign so the rate means one thing.
Social platforms report clicks; your website or shop records the conversions. Connect the two with UTM parameters on every link, then read conversions by source and campaign in your analytics tool. Ad platforms can also report conversions through their own pixels, but those numbers use the platform’s attribution rules and rarely match your analytics exactly.
An Instagram campaign sends 2,400 UTM-tagged visits to a product page, and 72 of those visitors buy. Conversion rate = 72 ÷ 2,400 × 100 = 3%.
Click-through rate is the percentage of people who clicked a link in a post out of everyone who saw it.
UTM parameters are short tags added to the end of a URL (utm_source, utm_medium, utm_campaign and more) that tell analytics tools like Google Analytics where a visit came from.
Social media ROI (return on investment) is the value earned from social media activity, minus what it cost, expressed as a percentage of that cost.
A call to action (CTA) is the part of a post or ad that tells people the one specific thing to do next, such as comment, save, visit a link, sign up or buy.
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