"The marketing efficiency ratio (MER) measures how much revenue marketing generates for every dollar spent. MER is calculated by dividing total revenue by total marketing spend for a defined period. Unlike ROAS, which focuses on the return of specific ad campaigns, MER gives a blended, executive-level view of overall marketing effectiveness across all channels. A higher MER indicates more efficient marketing performance, although what counts as "good" depends on margins, customer behavior, and business model."
"The marketing efficiency ratio (MER) is the total revenue generated divided by the total marketing spend for a specific period, giving a blended view of how efficiently marketing contributes to overall revenue. MER measures overall marketing effectiveness across all channels and reflects the combined impact of paid, organic, referral, partner, and brand-led activity. Because it compares all revenue to all marketing spend, it reflects how the entire marketing ecosystem is performing - campaigns, organic traffic, referral channels, brand building, partnerships, and everything in between."
Marketing Efficiency Ratio (MER) is total revenue divided by total marketing spend for a defined period, offering a blended, executive-level view of marketing effectiveness across all channels. MER captures paid, organic, referral, partner, and brand-led contributions and should use a consistent revenue definition across reporting windows. MER differs from ROAS by evaluating holistic marketing performance rather than specific ad campaigns. A higher MER signals more efficient marketing, but acceptable levels depend on margins, customer behavior, and business model. MER has become a headline metric for marketers, revenue leaders, and finance teams seeking sustainable returns and full-funnel insights.
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