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.

  1. How it works
  2. Prerequisites for using the strategy
  3. Strategy settings

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.

For example, Mary is the 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 campaign settings, Mary can choose the following priority goals: “Call” and “Chat message”. Then she can specify the conversion value for them (1000 rubles). In the strategy settings, Mary can set her priority goals as campaign goals and indicate the value for the cost revenue ratio (15%). The ads will be displayed in a way that they produce conversions for the specified goals, and the average cost of placement doesn't exceed the target cost revenue ratio.

This strategy is most effective for campaigns that get more than 200 clicks and at least 10 converted sessions a week.

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. You must specify the tag number and enable link tagging for Yandex.Metrica in the campaign settings in Yandex.Direct. More information about Yandex.Metrica.
  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 to 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 goal revenue 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": "Men's hoodie Yandex style",
                          "price": 1345.26,
                          "brand": "Yandex",
                          "category": "Clothing/Men's clothing/Hoodies and sweatshirts",
                          "variant": "Orange"
                      },
                      {
                          "id": "25314",
                          "name": "Women's hoodie Yandex style",
                          "price": 1543.62,
                          "brand": "Yandex",
                          "category": "Clothing/Women's clothing/Hoodies and sweatshirts",
                          "variant": "White",
                          "quantity": 3
                      }
                  ]
              }
          }
      });

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

Strategy settings

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 (if they are configured in your campaign settings). If only engaged sessions are used as priority goals, optimization for priority goals is not available.

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.

Attribution model

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 your 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.

More about attribution models.

Cost revenue ratio

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

The system will adjust bids so that the cost revenue ratio for the selected goal is close to the specified value.

As the strategy is run, the metric can deviate (either up or down) over the course of a week, but by the end of each week it will get closer to the set value.

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.