# Target cost revenue ratio

The “Target cost revenue ratio” strategy is good for advertisers who have defined their advertising goals and know their optimal ratio of expense to revenue.

## How it works

Cost revenue ratio (CRR) is the ratio of the amount of money spent on advertising to the revenue received. This metric is expressed as a percentage.

You can use this strategy to get the maximum number of conversions for the selected goal, while maintaining the specified cost revenue ratio. Bids are chosen so as to achieve the best results and keep advertising expenses within the specified percentage of the revenue that is given for the selected goal.

This strategy is best suited for campaigns that use E-commerce or send information about the conversion revenue to Yandex Metrica. This strategy can also be used for campaigns where revenue is specified as the value of the desired goal in the campaign priority goals.

Example 1. Optimizing for priority goals

Mary is a manager of an online flower store. She receives 40 delivery orders per week through phone calls and messengers. Her sales income is 40,000 rubles. It means that on average, one phone call or request yields 1000 rubles for the store. Mary is ready to spend 15% of that amount (150 rubles) on advertising.

In the strategy settings, Mary selects optimization for several goals and the cost revenue ratio of 15%. She sets the “Call” and “Chat Message” priority goals and specifies the conversion value for them (1000 rubles). The ads will be served to produce conversions for the specified goals so that the average ad cost doesn't exceed the target cost revenue ratio.

Example 2. Optimizing for Yandex Metrica goal with pay-per-conversion

Jason transmits the revenue of 100 rubles for the goal “View course page in the catalog” using Yandex Metrica. When setting up the strategy, he specified this goal for optimization, enabled pay-per-conversion and specified CRR = 25%.

A user clicked on an ad and was redirected to Jason's site. Over the session, they viewed 3 pages of courses in the catalog.

Yandex Metrica will add the following revenue: 3 (the number of goal completions) × 100 (revenue per goal completion) = 300 rubles.

For the ad placement, Jason will be charged 75 rubles = 300 rubles (the revenue according to Yandex Metrica) × 25% (the cost revenue ratio).

The Yandex Direct report will show 1 conversion for the goal “View course page in the catalog” and the revenue of 300 rubles.

When the ad campaign is launched, the strategy is trained. The training stage lasts up to 14 days. If you failed to get enough conversions during the training period, check the strategy settings based on the interface tips.

## Prerequisites for using the strategy

1. A Yandex Metrica tag is installed on the advertised website. Yandex recommends that you embed the tag's code snippet on every page of your site.
2. Goals are configured for your tag.
3. The tag ID is specified in the campaign parameters in Yandex Direct. More information about Yandex Metrica.

If you don't have access to the Yandex Metrica tag, you can request access only for the goals configured for this tag. To do this, click Request access.

4. You have configured passing the information about advertising revenue (the amount and currency of the goal value) to Yandex Direct. There are several ways to pass it:
• Add priority goals in the campaign settings and set a value for them. Besides the goals that bring you direct income, you can also choose any other goals to optimize your ads, such as registration on your website or consent to participate in a promo.

• Specify the revenue by goal in the Yandex Metrica interface. You don't need programming skills or precise financial indicators. Enter your average order value or estimated revenue per request or submitted form.
• Use the method `reachGoal` with the goal ID and preset value.
• Enable ecommerce and pass the product price or order amount. For the “eCommerce: Purchase” goal, the goal ID is automatically transmitted by Yandex Metrica. For any other goal, the ID must be passed in the `goal_id` field.
Example of passing the product price and goal ID
``````dataLayer.push({
"ecommerce": {
"purchase": {
"actionField": {
"id" : "TRX987",
"goal_id": "123456"
},
"products": [
{
"id": "25341",
"name": "Толстовка Яндекс мужская",
"price": 1345.26,
"brand": "Яндекс / Яndex",
"category": "Одежда/Мужская одежда/Толстовки и свитшоты",
"variant": "Оранжевый цвет"
},
{
"id": "25314",
"name": "Толстовка Яндекс женская",
"price": 1543.62,
"brand": "Яндекс / Яndex",
"category": "Одежда/Женская одежда/Толстовки и свитшоты",
"variant": "Белый цвет",
"quantity": 3
}
]
}
}
});``````

If you use a non-monetary revenue indicator, pass the payment currency you have set in Yandex Direct.

## Strategy settings

Select the criteria to get your target cost revenue ratio for:

Enable the Pay per conversion option to pay only for the goals completed by your users. The strategy will bring you conversions at a fixed cost equal to the specified percentage of the revenue transferred for the goal, accounting for preset adjustments.

For the option to run correctly, the income for the goal must be transmitted dynamically: using Yandex Metrica Ecommerce, using the Yandex Metrica API, or the selected revenue in your Yandex Metrica goal settings.

Optimize for goal

This strategy aims to increase the percentage of clicks on ads that most often reach the goal. You can use one of the Yandex Metrica goals or enable optimization by priority goals. To do this, in the Optimize for goal field, select For several goals and select the priority goal in the field below.

What does the color of the goal mean?

It shows the total number of conversions for the selected goal from all sources of traffic (attracted both by ads and otherwise).

Green

The goal has enough conversions for all traffic sources. We recommend using this goal.

Gray

The goal has few conversions for all traffic sources. There are risks that there'd also be few conversions for the goal during campaigns, making the campaigns ineffective. Choose this goal if you are sure you have enough conversions to run the strategy.

An attribution model is a rule that determines which click is assigned as the source of a session on your site. The model helps you more accurately identify how advertising contributes to business growth. The bidding system uses Yandex Metrica statistics for the selected attribution model and focuses on achieving the desired result.

You should select a model based on your business type, the method you use for attracting traffic, and what information you need to obtain from it. The default attribution model is Last click from Yandex Direct. You can change it as needed.

Cost revenue ratio

The desired ratio of spending on advertising to the revenue it generated, expressed as a percentage.

The specified value is affected by the selected adjustments.

Weekly budget

The minimum weekly budget is 300 rubles (see other currencies).

The actual expenditure of a campaign using this strategy may vary by several percent from the specified budget. Accuracy may be affected when you switch between strategies, make changes to the budget, suspend a campaign, refine your time targeting or change the campaign start date.

Budget distribution depends on your time targeting settings. For example, if you limit ad impressions to two days a week, your budget will only be distributed over those two days.

If the budget cannot be spent, you will see an alert in the interface and get a notification sent to your inbox. This usually means that the keywords selected have a low CTR, a low budget or a low maximum bid.

We don't recommend the Pay per conversion option if you use the daily budget on a shared account. Otherwise, your daily budget would be overspent by 30% or more or underspent significantly. To avoid overspending, it's better to limit the weekly budget at the campaign level.