Possible limitations
Posted: Sat Feb 01, 2025 9:36 am
As with any other metric, DRR also has limitations.
For example, it does not take into account that sometimes it is simply impossible to track an effective advertising channel that brings in the most customers. Let's imagine a situation where a young man has seen a trendy gadget ad on TV dozens of times, but bought it as soon as a popular blogger posted about it on a social network. In theory, this transaction can be attributed to the target's plus, although this is not 100% accurate.
The DRR calculates the final income from the sale, but the entire sales funnel influences the transaction. After all, the buyer goes a long way from the moment he learns about the product to the day he buys it.
This point plays a big role in israel email list offline sales. There are several factors that can either push or push away from cooperation and bringing the deal to a successful conclusion. For example, someone may find the employee of the point of sale incompetent or rude, another will feel uncomfortable buying the product at this particular point, and will want to do it at another one, but then simply forget. It is important to consider what exactly brought the person to the store for the product: the advertisement that he saw, or the real need for this product - he would have bought it without the advertisement. Many marketers claim that there is an existing problem in tracking the source of conversion. It can be solved by resorting to end-to-end analytics.
It is quite difficult to calculate the DRR for image advertising. And this is logical, because it is aimed not at increasing sales, but at increasing brand awareness, at “warming up” the audience and increasing loyalty to the company. It turns out that there are no exact figures for calculation.
Calculation of DRR in Yandex.Direct
Not long ago, Yandex.Direct introduced a strategy that helps manage investments and can make them several times more effective.
As already mentioned, the share of advertising expenses (SAE) is the ratio of the amount spent on advertising expenses to the income that the company received from this advertising. The new strategy is an updated version of "Profitability Optimization", but has simpler settings.
Yandex.Direct
Source: IB Photography / Shutterstock.com
The basis is the fact that the same goal on the site brings different income. For example, a businessman has an online store with a large assortment or a site for buying train tickets. When assessing the effectiveness of advertising, you need to understand that the cost of orders varies: one brings income of 1000 rubles, and another - 5000 rubles. Of course, it is permissible to use a fixed conversion cost, but for fine-tuning, it is better to choose to connect the "Target share of advertising costs" strategy.
In the long term, it will bring conversions on target and maintain the target share of advertising costs. Let's say, 5% of the cost of purchased products. This is very effective, which has already been confirmed by studies conducted in companies with smart banners or dynamic ads, where many products are advertised at once.
The audience learns about the seller and their product from several channels: hears through calls, sees in chats, in various application forms. If, for example, a call about an advertisement from a person from the target audience brings the company about 500 rubles, a message in a chat - 250 rubles, sending an application through a form - also 250 rubles. Then you can set such figures as key goals and fix the share of advertising costs as a percentage, for example, 15%.
From this point on, the strategy will record that it is necessary to bring in more leads for all key goals, but at the same time, the advertising costs should not exceed the amount of 150 rubles.
The setup is as follows:
Select the Target Share of Advertising Spend strategy.
Add an advertising campaign goal to it. When using an e-commerce goal or transferring income via API or Metrica, you need to select this goal in the list. The goals for which income is already transferred are shown at the top of the list. If there are multiple goals at once, you need to specify them in the campaign settings as key ones and set a specific value. We are talking about the profit that a business makes from one call or application form.
Set DRR.
It is possible to use the strategy both in API and Direct.Commander. To track the results of work, there is a column in the statistics called "Share of advertising expenses" (SAE).
Advertising campaigns that are linked to the "Target Share of Advertising Expenditures" strategy are offered the Direct bonus program. It allows you to get back 8% of the amount spent on advertising business development.
For example, it does not take into account that sometimes it is simply impossible to track an effective advertising channel that brings in the most customers. Let's imagine a situation where a young man has seen a trendy gadget ad on TV dozens of times, but bought it as soon as a popular blogger posted about it on a social network. In theory, this transaction can be attributed to the target's plus, although this is not 100% accurate.
The DRR calculates the final income from the sale, but the entire sales funnel influences the transaction. After all, the buyer goes a long way from the moment he learns about the product to the day he buys it.
This point plays a big role in israel email list offline sales. There are several factors that can either push or push away from cooperation and bringing the deal to a successful conclusion. For example, someone may find the employee of the point of sale incompetent or rude, another will feel uncomfortable buying the product at this particular point, and will want to do it at another one, but then simply forget. It is important to consider what exactly brought the person to the store for the product: the advertisement that he saw, or the real need for this product - he would have bought it without the advertisement. Many marketers claim that there is an existing problem in tracking the source of conversion. It can be solved by resorting to end-to-end analytics.
It is quite difficult to calculate the DRR for image advertising. And this is logical, because it is aimed not at increasing sales, but at increasing brand awareness, at “warming up” the audience and increasing loyalty to the company. It turns out that there are no exact figures for calculation.
Calculation of DRR in Yandex.Direct
Not long ago, Yandex.Direct introduced a strategy that helps manage investments and can make them several times more effective.
As already mentioned, the share of advertising expenses (SAE) is the ratio of the amount spent on advertising expenses to the income that the company received from this advertising. The new strategy is an updated version of "Profitability Optimization", but has simpler settings.
Yandex.Direct
Source: IB Photography / Shutterstock.com
The basis is the fact that the same goal on the site brings different income. For example, a businessman has an online store with a large assortment or a site for buying train tickets. When assessing the effectiveness of advertising, you need to understand that the cost of orders varies: one brings income of 1000 rubles, and another - 5000 rubles. Of course, it is permissible to use a fixed conversion cost, but for fine-tuning, it is better to choose to connect the "Target share of advertising costs" strategy.
In the long term, it will bring conversions on target and maintain the target share of advertising costs. Let's say, 5% of the cost of purchased products. This is very effective, which has already been confirmed by studies conducted in companies with smart banners or dynamic ads, where many products are advertised at once.
The audience learns about the seller and their product from several channels: hears through calls, sees in chats, in various application forms. If, for example, a call about an advertisement from a person from the target audience brings the company about 500 rubles, a message in a chat - 250 rubles, sending an application through a form - also 250 rubles. Then you can set such figures as key goals and fix the share of advertising costs as a percentage, for example, 15%.
From this point on, the strategy will record that it is necessary to bring in more leads for all key goals, but at the same time, the advertising costs should not exceed the amount of 150 rubles.
The setup is as follows:
Select the Target Share of Advertising Spend strategy.
Add an advertising campaign goal to it. When using an e-commerce goal or transferring income via API or Metrica, you need to select this goal in the list. The goals for which income is already transferred are shown at the top of the list. If there are multiple goals at once, you need to specify them in the campaign settings as key ones and set a specific value. We are talking about the profit that a business makes from one call or application form.
Set DRR.
It is possible to use the strategy both in API and Direct.Commander. To track the results of work, there is a column in the statistics called "Share of advertising expenses" (SAE).
Advertising campaigns that are linked to the "Target Share of Advertising Expenditures" strategy are offered the Direct bonus program. It allows you to get back 8% of the amount spent on advertising business development.