How is MER different from ROAS?

ROAS usually looks at a channel or campaign. MER blends total revenue against total marketing spend.

MER is useful when attribution is noisy and you want a blended planning number for the whole marketing system.

MER Calculator

Calculate marketing efficiency ratio from total revenue and total marketing spend for a blended view when attribution is noisy.

MER calculator

Calculate marketing efficiency ratio from total revenue and total marketing spend.

Revenue

Spend

Marketing efficiency ratio

MER = revenue / spend

Use MER as a blended efficiency read, then reconcile it with channel ROAS, margin, organic demand, and total cash spend.

Formula

Marketing efficiency ratio, defined.

MER divides total revenue by total marketing spend. It is a blended efficiency measure, so it reflects the whole marketing system rather than one campaign or platform report.

MER = revenue / spend

Worked example

From revenue to MER.

If total revenue is $4,000 and total marketing spend is $1,000, the math is 4,000 divided by 1,000. The result is a 4.00 MER.

How to read this result

Read MER beside channel and margin detail.

MER is helpful when attribution is imperfect, but it can hide channel-level problems. Reconcile it with ROAS, contribution margin, organic demand, and total cash spend.

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FAQ

How is MER different from ROAS?: ROAS usually looks at a channel or campaign. MER blends total revenue against total marketing spend.
When is MER useful?: MER is useful when attribution is noisy and you want a blended planning number for the whole marketing system.

Related: Facebook ROAS benchmark

Related: ROAS calculator

More free tools: the full Kelpi toolbox