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
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.
When calculating the CRR/ACoS, you should divide the costs in relation to the revenue.
CRR/ACoS = Advertising costs / Shopping basket revenue
Campaign A, generated €250 revenue and the advertising costs are €50. The CRR/ACoS in this case is 20% (50/250 = 20%)