Which statistic indicates how often a click has led to a conversion?
Correct Answer
Conversion rate
Why is this the correct answer?
Conversion rate is the statistic that indicates how often a click has led to a conversion. It is calculated as the number of conversions divided by the number of clicks, expressed as a percentage. For example, if an ad receives 100 clicks and 5 people complete a purchase, the conversion rate is 5%. Conversion rate directly measures the effectiveness of the post-click experience — how well the landing page and offer convert visitors into customers. It is one of the most important metrics for evaluating campaign profitability.
Why are the other options wrong?
Cost-per-conversion
Cost-per-conversion measures how much is spent for each conversion — it is a cost efficiency metric, not a rate measuring how often clicks convert.
Clickthrough rate (CTR)
Clickthrough rate (CTR) measures how often an impression leads to a click — it measures ad effectiveness before the click, not what happens after.
Converted clicks
Converted clicks is a count of the total number of clicks that resulted in a conversion — it is a volume metric, not a rate indicating the proportion of clicks that converted.
Real-world example
An online retailer gets 5,000 clicks per month from their Google Ads campaign. 150 of those clicks result in a purchase. Their conversion rate is 3% — meaning 3 out of every 100 people who click the ad make a purchase. Improving the landing page raises conversion rate to 5%, generating 250 sales from the same ad spend.
Official documentation: https://support.google.com/google-ads/answer/2615875
About the Google AdWords Fundamentals Exam (Retired)
The AdWords Fundamentals exam was retired when AdWords became Google Ads.
Exam guide and all 140 AdWords Fundamentals (Legacy) questions →Related AdWords Fundamentals (Legacy) questions
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