Business Advertising

MER calculator

Total revenue, all channels
Total marketing spend
Gross margin
%
MER
All revenue ÷ all spend — attribution-free
Marketing as a share of revenue 20 %
Break-even MER 2.222×
Gross profit after marketing 20,000
Headroom 2.778×
No attribution · total in, total out
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320 × 100

MER is total business revenue divided by total marketing spend, across every channel and regardless of attribution. Eighty thousand of revenue on sixteen thousand of spend is a MER of 5× — marketing costing 20% of revenue.

How to calculate MER

1 Take total revenue for the period from your accounts, not from an ad platform.
2 Take total marketing spend, including agency fees and creative.
3 Divide one by the other.
4 Track the trend monthly — MER is a management number, not a campaign one.

MER became popular precisely because platform-reported ROAS stopped being trustworthy. After privacy changes broke deterministic tracking, the sum of every channel claimed revenue routinely exceeds actual revenue, sometimes by a wide margin. MER sidesteps the problem by refusing to attribute anything: it compares what the business took against what the business spent. The trade-off is that it cannot tell you which channel to cut, so most teams use MER for the health of the whole and platform metrics for relative decisions within it.

Questions

Marketing efficiency ratio — total revenue divided by total marketing spend, with no attribution modelling at all.

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300 × 250
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