MER (Marketing Efficiency Ratio)
MER (marketing efficiency ratio) is total revenue divided by total marketing spend, a blended measure of marketing efficiency across all channels.
MER, or marketing efficiency ratio, is total business revenue divided by total marketing spend across all channels in a period. Unlike channel-level ROAS, MER measures the efficiency of the whole marketing program with no attribution model in the middle.
How it works
MER sidesteps attribution disputes because both inputs come straight from the P&L: all revenue over all marketing cost. Teams track MER weekly or monthly alongside channel metrics; when platform ROAS looks great but MER declines, channels are claiming credit for the same sales. MER targets are set from gross margin and growth goals, defining how much total marketing the business can afford per revenue dollar.
Why it matters
MER is the number a CFO trusts. It keeps channel optimizations honest, exposes double-counted conversions, and connects marketing performance to the actual financial statements the business runs on. Learn more about our marketing attribution services.
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