Formula
MER = Total revenue ÷ Total advertising spendMER 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.