What Ad Spend Share (DRR) Is on a Marketplace
DRR — ad spend share — is the percentage of revenue you spend on advertising. The math is simple: ad spend ÷ revenue from those ads × 100%. The lower the DRR, the more efficient the advertising. There is no "normal" value in a vacuum: DRR must fit within your margin — if a product has 20% net profit and a DRR of 25%, the advertising runs at a loss.
In short: DRR = ad spend ÷ revenue × 100%. Normal is when DRR is below your margin.
How to Calculate and Read It
- Formula: DRR = (ad spend / revenue) × 100%.
- Low DRR — the ads pay off; you can scale.
- High DRR — it eats the profit; fix bids, keywords, or the product card.
- DRR is essentially an equivalent of ACOS; ROI/ROAS look at return, DRR looks at the share of spend.
What DRR Is Normal
- It depends on the product's margin: the benchmark is a DRR noticeably below the net margin from your unit economics.
- At a card's launch DRR is higher (you are paying for the push); on organic traffic it is lower.
- Decisions are made on profit, not on a "pretty" DRR: sometimes a high DRR is worth it while organic sales grow.
Related reading: Wildberries Jam.
Frequently Asked Questions (FAQ)
"What does DRR stand for?" Ad spend share — the percentage of revenue spent on advertising. It is calculated as ad spend divided by the revenue from those ads, multiplied by 100%.
"What DRR is considered normal on WB and Ozon?" One that fits within the product's margin. If net profit is 20% and DRR is 25%, the ads run at a loss. The benchmark is a DRR below your net margin.
"How does DRR differ from ROI and ACOS?" DRR and ACOS both measure the share of spend in revenue. ROI and ROAS show the return on investment. DRR is convenient for control, making sure advertising does not eat the profit.
"Why is a high DRR sometimes justified?" At launch, advertising accelerates the card and lifts its organic ranking. If total profit grows thanks to organic sales, a temporarily high DRR can pay off.
