Ad metrics on Uzum: DRR, ACOS, ROMI and when to stop

Turning ads on is easy, but understanding whether they bring profit is hard. Five metrics are enough.

Core metrics

• CTR = clicks ÷ impressions. Shows whether the photo and price attract attention.
• Conversion = orders ÷ listing visits. Shows whether people buy after the click.
• DRR = ad spend ÷ total revenue. The share of store revenue that ads consume.
• ACOS = ad spend ÷ ad revenue. Only for sales that came through ads.
• ROMI = (profit from ads − ad spend) ÷ ad spend. How much profit each invested sum returned.

Example

Ads cost 150,000 UZS. Ads brought sales of 900,000 UZS, and total store revenue is 1,000,000 UZS.

• ACOS = 150 000 ÷ 900 000 = 16,7%
• DRR = 150,000 ÷ 1,000,000 = 15%

If the product margin (before ads) is 25%, profit after ads: 900,000 × 25% − 150,000 = 75,000 UZS. ROMI = 75,000 ÷ 150,000 = 50%. If the margin is 15%, profit is 135,000 − 150,000 = −15,000: ads are loss-making.

Rule: if ACOS is lower than the margin, ads are profitable. If equal, it is the break-even point.

When to stop and when to increase

• Stop: no orders after enough impressions; ACOS above the margin; stock is running out.
• Increase: ROMI is consistently positive; conversion is high; stock is sufficient.
• Fix the listing first: with low CTR — photo and name, with low conversion — price, reviews, attributes. Ads will not fix a weak listing.

Mistakes

• Looking only at the number of clicks: they spend money but bring no profit.
• Judging ads without cost price: the "profit" will be false.
• One budget for all products: more for leaders, nothing for non-sellers.
• Deciding from one day's result: observe for at least 7–14 days.

For types and cost — Advertising on Uzum. To see ads and profit for each SKU together — Ad effectiveness.