MER Calculator

What MER measures

Marketing efficiency ratio divides total business revenue by total marketing spend. It provides a blended view that is less dependent on how individual platforms claim conversions. If revenue is $100,000 and marketing spend is $25,000, MER is 4x.

Define total spend

Decide whether the model includes only media or also agencies, creators and production. A broader definition gives a more complete efficiency view but should be labeled so it is not compared incorrectly with media-only periods.

MER versus platform ROAS

Platform ROAS is useful for campaign optimization, while MER helps management understand the whole business. Differences can arise from organic demand, repeat orders, offline revenue and overlapping attribution.

FAQ

Is higher MER always better?

Higher efficiency may help profit, but spending too little can limit growth. Interpret MER with contribution margin, new-customer volume and business goals.

Should tax be included in revenue?

Use a consistent accounting definition; tax collected for government is generally not usable business revenue.

Learn more in MER vs. ROAS and blended vs. platform ROAS.