A conversion rate is the percentage of users that complete a targeted activity. Conversion rates are derived by dividing the total number of users who ‘convert’ (for example, by clicking on an advertisement) by the total size of the audience, then converting the result to a percentage.

Conversion rates are tools to compare and evaluate the results of different promotion platforms. Conversion rates are highly important when running mobile user acquisition efforts since they help measure the performance of each campaign, as seen in the preceding example. They may also be used to outline ROI expectations while building a campaign.