The abbreviation CRR means Cost Revenue Ratio and describes the ratio between expenses and actual sales as a percentage and is used in for Google and Bing advertising.
The abbreviation ACoS means Advertising Cost of Sales and describes the ratio between expenditure and actual sales as a percentage and is used in the Amazon Advertising platform.
Google Ads, Microsoft Ads | Amazon Advertising |
CRR | ACoS |
CRR is used when you know how much the maximum costs for advertising should be.
The smaller the CRR/ACoS value, the more economical and profitable the advertising campaign. The higher the CRR/ACoS value, the higher the proportion of the costs are in relation to the revenue.
For example when the CRR/ACoS is 25%, the costs are a quarter of the revenue.
CRR/ACoS calculation
When calculating the CRR/ACoS, you should divide the costs in relation to the revenue.
CRR/ACoS = Advertising costs / Shopping basket revenue
Example:
Campaign A, generated €250 revenue and the advertising costs are €50. The CRR/ACoS in this case is 20% (50/250 = 20%)