Conversion Rate in Russian Internet equals 3,5%
According to the information, collected by Mindshare INTERACTION agency, in 2006 the average figure of Conversion Rate for Russian Internet equaled 3.5%. Conversion Rate (CR) is one of the most important parameters for measuring effectiveness of online advertising campaigns. CR shows percentage of website visitors who were converted (transformed) into end users of advertised goods or services. This parameter is the most important for e-commerce enterprises, banks and financial services companies, car dealers and other companies, which provide opportunity to fill out sales request form through their websites.
Authors of research stress that the median figure of Conversion Rate in the United States and Europe also oscillates at the level of 3-4%. This means that consumer behavior of Russian Internet users is on average similar to behavior of Internet users in the West.
For a long time a key parameter of Internet advertising was not the CR, but CTR (click through rate) – the ratio between clicks on banners and the overall volume of ad displays. But as e-commerce has evolved and the Internet has been deeply implemented in communication strategies of well-known brands, market specialists decided that it’s not enough to simply gauge response to certain kinds of banners. That was when CR took the center stage – the level of converting website visitors into consumers of goods or services is the figure, which demonstrates real effectiveness of Internet advertising. The advertisers want to know not only the cost per click (CPC) figure, but also cost per consumer, who took a specific desired action at the advertiser’s website (such as request for a test drive, credit card application, etc) – this is called CPL (cost per lead). According to research, conducted by MindShare INTERACTION, today the level of CPL in Russian Internet oscillates between $20 and $65. The more expensive and complex are the advertised goods or services, the higher is the cost of attracting the customer.
“This was the first year when we began using Conversion Rate-based analysis. Thanks to accumulated data, we have an opportunity to optimize media strategies of our clients and to trace the dynamics of this figure depending on ad placements,” says Dmitry Ashmanov, general director of MindShare INTERACTION agency. According to Ashmanov, the company receives information not only on the quantity of attracted audience, but also on its socio-demographic features. “We can evaluate both the quantity and quality of consumers, who were attracted with certain ad placement,” he explains.