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Marketing Efficiency Ratio Calculator

Calculate blended marketing efficiency ratio by comparing total business revenue with total advertising spend for the same period.

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Calculate MER

Enter your values and calculate to see the result.

Formula

MER = Total revenue ÷ Total advertising spend

MER versus platform ROAS

Marketing efficiency ratio divides all business revenue by all advertising spend. If revenue is $100,000 and ad spend is $20,000, MER is 5×.

Unlike platform ROAS, MER does not require revenue to be attributed to a specific ad platform. This makes it useful as a blended trend, especially when channels claim overlapping conversions.

Interpretation limits

MER includes revenue that may have occurred without paid media. Seasonality, email, retail, organic search and repeat customers can move the ratio even when advertising performance is unchanged.

Assumptions

  • Revenue and spend cover the same period.
  • MER is blended and does not prove incremental impact.

Sources and methodology

CalcMotive publishes the formula and assumptions so you can decide whether the estimate fits your use case. See our methodology standards.

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