Definition of Pay Per Conversion
An advertising pricing model where the advertiser pays only when a desired action, such as a sale, is completed.
Explanation of Pay Per Conversion
Pay per conversion is a pricing model in online advertising where advertisers pay only when a specific action, such as a sale, lead, or signup, is completed by a user. This model is performance-based, meaning advertisers are charged only when their ads successfully drive the desired outcome. Pay per conversion offers a higher return on investment (ROI) compared to other models like pay per click or pay per impression, as businesses only pay for actual results. This approach reduces the risk of spending on ineffective ads and ensures that marketing budgets are used efficiently. To implement pay per conversion, advertisers set up conversion tracking on their websites, which allows them to monitor and measure the performance of their campaigns. Platforms like Google Ads and Facebook Ads support this model, providing tools to optimize campaigns for higher conversion rates. By focusing on conversions, businesses can better align their advertising efforts with their overall marketing goals, ultimately driving more revenue and growth.