GMAT Focus EditionData InsightsMedium
A data analyst is evaluating the performance of three advertising campaigns (Campaign X, Campaign Y, Campaign Z) based on their click-through rates (CTR) and conversion rates. The target audience for each campaign is distinct, so direct comparison of raw numbers is not ideal. Instead, the analyst wants to use a normalized performance metric to compare efficiency. Campaign X: 50,000 impressions, 1,000 clicks, 50 conversions Campaign Y: 80,000 impressions, 1,200 clicks, 72 conversions Campaign Z: 60,000 impressions, 900 clicks, 45 conversions Which campaign has the highest conversion rate per click?
- ACampaign Z
- BCampaigns Y and Z have the same highest rate
- CCampaign X
- DCampaign Y
Show answer & explanationAnswer & explanation
Correct answer: D. Campaign Y
To find the conversion rate per click, divide the number of conversions by the number of clicks for each campaign. Campaign X: 50/1000 = 0.05. Campaign Y: 72/1200 = 0.06. Campaign Z: 45/900 = 0.05. Campaign Y has the highest rate.
Why the other options are wrong
- A. Campaign Z has a conversion rate per click of 0.05, which is not the highest.
- B. Campaigns Y and Z do not have the same highest rate; Campaign Y is higher than Campaign Z.
- C. Campaign X has a conversion rate per click of 0.05, which is not the highest.
Conversion Rate Per Click
Conversion Rate Per Click (CRPC) measures the percentage of clicks that result in a desired conversion. It indicates the efficiency of clicks in generating outcomes.
- Calculated as (Conversions / Clicks) * 100%.
- Focuses on post-click engagement.
- Useful for evaluating landing page effectiveness or offer appeal.
Memory trick: Efficient campaigns convert, from click to success, with precision.