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What is MER?

MER, or marketing efficiency ratio, is your total revenue divided by your total marketing spend over the same period. It shows how much revenue the business earns for every dollar spent on marketing across all channels.

Last reviewed .

How to calculate MER

Divide your total revenue by your total marketing spend.

MER calculator

Replace the example numbers with your own.

Your MER4xYour revenue was 4x your total marketing spend.

Why MER matters

MER gives a whole-business view of marketing efficiency. It doesn't depend on which platform gets credit for a sale, so it avoids disagreements between ad platforms' reports.

It's helpful when customers see several channels before buying, and attribution is hard to pin down.

MER versus ROAS

ROAS usually measures one campaign or platform using the revenue it reports. MER uses all revenue and all marketing spend, including sales that came from organic search, email, and word of mouth.

Because of this, MER is a broad health check, and ROAS is better for managing individual campaigns.

Limits of MER

MER can't tell you which channel is working. Strong sales from existing demand can hide a weak campaign, so use it with channel-level data and incrementality tests.

Disclaimer

This calculator is for informational purposes only, and we don't guarantee the accuracy of its results. You're responsible for verifying any results before relying on them. See our terms of use.

Common questions

How do you calculate MER?

Divide total revenue by total marketing spend. For example, $400,000 in revenue on $100,000 of marketing spend is a MER of 4x.

What is a good MER?

It depends on your margins and business model. Compare MER with your break-even point and your own history, since a ratio that is healthy for one business can lose money for another.

Is MER the same as blended ROAS?

They are used interchangeably by many teams. Both divide total revenue by total marketing spend, though some people define blended ROAS using only ad spend.

What should count as marketing spend in MER?

Include paid media at a minimum. Many teams also add agency fees, creative costs, and tools. Pick one definition and keep it the same over time.

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