MER
financialMarketing Efficiency Ratio
Definition
Total revenue divided by total marketing spend across all channels. A blended view of marketing performance.
How to Calculate MER
Total Revenue ÷ Total Marketing Spend
Example
Scenario: $100,000 revenue with $25,000 total marketing spend
Calculation: $100,000 ÷ $25,000 = 4.0x MER
What's a Good MER?
3-6x for most DTC businesses depending on margins and strategy
Common Mistakes
- Only tracking paid channel ROAS instead of blended MER
- Not including all marketing costs (creative, tools, team)
💡 Expert Tip
MER is often 20-40% lower than platform-reported ROAS due to attribution overlap and organic lift. Track both for complete picture.
— Based on $100M+ in managed ad spend
Related Terms
By Kristijan Arapov • Based on $100M+ in managed ad spend • Updated 2026