Marketing Efficiency Ratio (MER)

Definition

Marketing Efficiency Ratio (MER): MER (Marketing Efficiency Ratio) is total revenue divided by total marketing spend across all paid channels. It is the DTC operator's version of blended ROAS and the most cited attribution-agnostic metric since iOS 14.5.

# Marketing Efficiency Ratio (MER) MER is total revenue ÷ total paid marketing spend. It is attribution-agnostic: you do not care which platform claims the sale, only that total revenue grew more than total spend. MER became the default DTC metric after iOS 14.5 because Meta's pixel-based ROAS became unreliable and operators needed a number they could trust. ## Why it matters MER refuses to be fooled by pixel drift, walled-garden double-counting, or inflated view-through conversions. When platform ROAS says you are winning but cash is not piling up, MER is usually the first metric to tell the truth. ## How Admaxxer surfaces it Admaxxer computes MER on the [Attribution dashboard](/features/capi-match-rate) as a daily, weekly, and 30-day rolling number, with a channel-contribution breakdown showing how much of revenue growth was driven by Meta, Google, organic, and baseline. Paired with [blended ROAS](/glossary/blended-roas) and [cohort LTV](/glossary/cohort-ltv), MER gives you the three-number health check that replaces platform-reported ROAS as your north star. ## Example If your brand booked $500,000 in revenue last month and spent $125,000 on Meta + $50,000 on Google + $5,000 on email, your MER is $500,000 / $180,000 = 2.78x. A brand with 45% gross margin wants MER above roughly 2.2x to stay cash-flow positive after product cost + fulfillment.

Related Terms

Frequently Asked Questions

Is MER the same as blended ROAS?

Yes. MER is the DTC operator vocabulary; blended ROAS is the paid-media vocabulary. Both equal total revenue divided by total paid spend.

Does MER include organic revenue?

Yes — the numerator is total revenue across every source. Only paid spend is in the denominator, which is why MER captures the halo effect of paid ads on organic demand.

What MER do I need to be profitable?

Break-even MER = 1 / (gross margin - variable cost percentage). A brand with 50% gross margin and 15% variable costs needs MER above roughly 2.86x to break even on contribution.

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