Unit Economics Calculator: Assessing the Impact of Advertising Spend on DRR
As you can see from the calculator, in order for the CRR to increase by 1%, the CPM must become higher. In this case, advertising costs will increase by 25,200 rubles. And if the CPM decreases and the costs amount to only 14,800 rubles, the indicator will decrease by 1%.
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However, the amount of revenue received and the average check also affect the DRR. You can check how the DRR depends on the amount of revenue and the average check yourself, using the funnel calculator, the link to which we will give at the end of the article.
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How to reduce DRR?
There are several approaches that can help reduce the share of advertising costs:
Optimization of advertising channels - you can reduce the CRR by directing a larger budget to the most effective channels and reducing costs on less effective ones.
Increased conversion - the higher the conversion, the more revenue you will receive from your advertising efforts, and therefore the lower the CRR will be.
Analyze and optimize results - Learn which campaigns and strategies are performing best and implement appropriate changes to optimize results and reduce CRR.