New Google Shopping Bid Strategies: Max. CRR and Max. CPA

Today we added 2 new strategies to our recently launched Advanced Bid Strategies and also as General Bid Strategy directly to your Dashboard.

Now you can use the Max. Cost-Revenue-Ratio (CRR) and Max. CPA (CPA) Bid Strategy with Whoop! to optimize your performance.

cost revenue ratio

We realized that the Cost revenue ratio is not used very often by our English speaking customers, but in German speaking countries it is a frequently used performance indicator when it comes to measuring the performance of online advertising campaigns (CRR in German: “Kosten-Umsatz-Relation” or “KUR”).

The Max. CPA Strategy enables Retailers who currently do not track revenues but only conversions to optimize their Google Shopping spendings. You can also use Max. CPA if you already track revenues but want to optimize by Max. CPA. We strongly recommend to use the Minimum ROAS or Maximum Cost Revenue Ratio if you already track your revenues. We will post an article on that topic tomorrow.

What is the Cost Revenue Ratio (CRR)

In a few words the CRR is the reversed Return of Advertising Spend (ROAS).
Remember: The ROAS ist calculated by dividing the revenues by the accrued costs (revenue ÷ costs).
If you just switch the denominator and numerator you’ll get the CRR which is as easy to compare as the ROAS:

cost revenue ratio = cost ÷ revenue

CRR is mostly used as Percentage (just multiply the division with 100). So if your CRR is 5% it means you spent 5 $ for a revenue of 100$.
The lower the CRR, the more efficient is your performance or: the lower the CRR the better, generally speaking. So the CRR is essentially how much you need to spend to make a dollar.

What is Max. CRR and Average CRR?

If we are talking about CRR, we mean the average CRR which you will see for your campaign results.

The Max. CRR is the percent-wise limit your are willing to spend for gaining revenues (to note: This is based on single transactions.) Let’s say you defined a Max. CRR of 20 % – some of your Google Shopping products overshoot that limit and some of your products will perform with very efficient CRRs. So you want to downgrade the overshooting products to meet your maximum CRR constraint and therefore increase your efficiency without harming your revenues much.

The CRR could be fine, even with many products overshooting your CRR-Limit if they are heavily subsidized by well performing products. So you should always know about how your accrued costs and revenues are distributed, if you are looking at your average CRR. This is the same for the ROAS (Minimum ROAS vs. Average ROAS).

Try the New Bidding Options now!

The Max. CRR is now part of the our Advanced Bid Strategies for Google Shopping in Whoop! and ready to optimize your campaigns. Try it out today!

Try it now for free!