Conversion Rate (CVR)

A conversion rate is a metric that measures the percentage of users who take a specific action that an advertiser or marketer wants them to take.

In the context of mobile app advertising, a conversion rate typically refers to the percentage of users initiating a download & installation on the promoted app’s product page.

In Apple Search Ads, a conversion is defined as either a download or a redownload of an app performed by a user acquired with an ad. The system uses a 30-day attribution window. It means that if the user taps on an ad and then downloads or re-downloads the app within that time, the system will count a conversion.

This is important for two reasons:

1. An app can be downloaded, installed and uninstalled, redownloaded and reinstalled several times on the same device.
2. Many users don’t engage with apps after installation, therefore a download or an install aren’t indicative of an app’s actual use.

Installs & downloads are frequently used interchangeably. On a side note, according to the official guide on best practices for Apple Search Ads, 92% of surveyed iOS users have redownloaded apps.

Above information has practical implications for app advertisers and marketers operating on the App Store. Besides installs, it’s advisable to track additional conversion types related to performing specific activities inside the app, after installing it.

This can be done in SplitMetrics Acquire, after an integration with an app analytics system used for tracing internal events of an app, supplied by a mobile measurement partner (MMP).

This more granular and specific approach to defining what is a conversion may have a big impact on tracking the correct values of CPA (Cost per Acquisition) and CPI (Cost per Install).

Conversion rate helps to measure the effectiveness of all user acquisition efforts, through paid campaigns and organic traffic, on very specific terms set by the marketer: from downloads, to specific in-app activities, like subscriptions and purchases. Conversion rate provides a clear measure of how effective a campaign is in achieving its goals. It’s crucial that what an app advertiser or marketer considers a conversion, truly reflects business goals of an app.

There are several factors that can affect conversion rate in mobile app advertising. Here are some of the most common ones:

1. Ad relevance: ads that are relevant to the user's search intent or interests are more likely to generate conversions.
2. Ad quality: clear messaging, compelling icons and screenshots, a catchy & informative name are a key factor in driving conversions.
3. Product page experience: an app’s product page on the App Store is fundamental to the conversion rate’s value. Icon, screenshots, video, copy, rating, reviews all have tremendous impact on it.
4. User experience: a smooth, frictionless user experience with easy navigation, fast loading times, and a clear path to conversion is key for many in-app conversion types.

5. Targeting: from careful keyword selection & optimization to a wealth of other options, targeting the right audience is important in driving conversions.

   Keep in mind that with targeting options, you won’t be able to reach Apple Search Ads users with Personalized Ads turned off. So in order to grab all opportunities to scale, make sure to use targeting in addition to a reach-all campaign.

6. Ad placement: there are four available ad placements on the App Store, each with a different purpose and consequently – attainable conversion rates.
7. Conversion type: the probability of performing a task within an app depends heavily on the task itself and required engagement.
8. Monetization strategy: the probability of subscribing to a premium plan inside the app may be lower than viewing ads. Monetization has a big impact on conversion.
9. Type of campaign: ads run with the purpose of reengagement of users may have higher conversion rates than those targeting new users.

To calculate conversion rate, you need to divide the total number of app downloads by the total number of visitors on your app’s product page and multiply the result by 100%.

Conversion rate in Apple Search Ads is the total number of Apple Search Ads Advanced installs received within a period divided by total number of taps within the same period.

Conversion rate formula

The formula for calculating a conversion rate is as follows:

CVR = (Total Downloads / Total Visitors) x 100%

Let's say your app’s product page received 10,000 visits during a specific timeframe, and your app was downloaded 7000 times as a result. The calculation of the CVR would be as follows:

CVR = (7000 / 10,000) x 100%

CVR = 70%

This means that 70% of users visiting your app’s product page initiated a download. An impressive result indeed, but hardly the best one. According to our latest SplitMetrics Apple Search Ads Search Results Benchmarks Report, in 2022 the average conversion rate for Entertainment apps was 79,69%!

Being the most important metric, it’s difficult NOT to track conversion rates for your campaigns, as it’s featured prominently in the Apple Search Ads system :).

SplitMetrics Acquire, our Apple Search Ads automation and optimization platform adds other options for tracking various conversion types. Integration with an MMP (a mobile measurement partner) will allow you to choose alternate, supplemental activities for conversions.

Increasing your app’s product page conversion rate is the ultimate goal of your user acquisition strategy and as such it should take advantage of the synergy between app store optimization & Apple Search Ads.

In other words, Apple Search Ads relies on copy, metadata & creatives present on your app’s product page (with its variants, present on custom product pages) to create ads. Therefore, ASO has a tremendous impact on your ads’ performance. Crucial tips for improving your conversion rate on the App Store are:

1. Implement A/B testing: to introduce data-driven creatives on your product page and improve the relevance and quality of your ads.
2. Utilize custom product pages: to increase relevance and improve targeting of your ads (read our Custom Product Pages Playbook to understand how).
3. Perform a competitive analysis: to find relevant & viable paths (keywords) to reaching your audience.