When to calculate DRR and how to do it. First, let’s talk about what DRR is in advertising. This is an indicator that shows what percentage of income for a certain period of time was spent on advertising. It is calculat using the overseas data formula: “advertising expenses / advertising revenue × 100%”.
The DRR must be determin at each advertising launch. Bas on the calculation results, it is possible to.
Analyze the results and return on advertising costs.
Identify the most effective channels and review promotion methods;
Determine advertising costs for the near future
To correctly calculate the DRR in marketing, you ne to know what profit the advertising brought. If we are talking about online how to use google ads to boost your business? promotion, then you can use call tracking and end-to-end analytics for this. To do this, you ne to do the following:
set up end-to-end analytics;
set the interval for determining the value;
select the requir advertising channel;
collect information on costs and profits separately;
determine the DRR using the formula given above.
The metric can be calculat both for total costs and for each channel. The second method is better, as it allows you to understand which promotion methods work and which do not, and optimize costs bas on this.
The company order the setup and management of contextual advertising. The budget for the campaign implementation was 36 thousand rubles. During the advertising period, the business receiv 33 million rubles from contextual advertising alone. Using the formula, we get the DRR for this channel of 0.1%.
When calculating the metric
We did not take into account ukraine business directory expenses on other channels of interaction with customers and sales that came from there or thanks to managers. Therefore, the indicator turn out to be extremely accurate for analyzing the payback of contextual advertising only. 0.1% is an excellent result indicating the effect of advertising.
