Term

DRR

the main indicator of 'are we buying sales too expensively?'.

Formula

DRR = (Advertising Expenses / Revenue) × 100%

DRR (the share of advertising expenses) shows what portion of revenue has been "eaten up" by advertising.

In Detail

DRR increases either due to rising expenses or falling revenue (often due to conversion rates, delivery issues, or stock levels). It is convenient to calculate DRR by store, by SKU, and by campaigns. It is important to compare the same time frames (day-to-day or week-to-week).

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