What is MER (Marketing Efficiency Ratio)?
MER divides total revenue by total marketing spend — a platform-independent "blended ROAS." Shows overall marketing efficiency without attribution modeling.
Formula
Example
If monthly revenue is $50K and total marketing spend is $12,500 (Google: $6K + Meta: $5K + Email tool: $1K + Influencer: $500), MER = $50K / $12,500 = 4.0×
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Related Terms
ROAS
ROAS (Return on Ad Spend) measures how much revenue you earn for every unit of currency spent on ads. Important: this is revenue, not profit.
Attribution
Attribution determines which ad channel gets "credit" for a sale. Your choice of model dramatically affects what you think about your campaign performance.
CAC (Customer Acquisition Cost)
CAC shows the total cost of acquiring a new customer — including all marketing and sales costs. A healthy LTV:CAC ratio is at least 3:1.
Net Profit
Net profit is total revenue minus all costs (COGS, ads, shipping, wages, taxes, everything). The "true" bottom line — what's actually left.