Marketing Efficiency Ratio (MER)
Definition
MER relates total revenue to total marketing expenses.
For the same period, revenue is divided by defined marketing costs. The ratio considers the overall effect of the marketing mix without causally attributing revenue to individual contacts.
Simply explained
How much revenue corresponds to one euro of marketing expenditure?
Why it matters in practice
The metric complements channel-specific analyses and can reveal changes in the overall picture.
Example from business
Hypothetical example: 100,000 euros revenue with 20,000 euros marketing costs results in an MER of 5.
Limits and pitfalls
- Cost scope and period must remain the same. The ratio neither measures profit nor additional effect alone.
Origin & history
MER originates from business management marketing control and is especially used in retail.
Use in mid-sized companies
- SMEs can consider monthly values together with margin and new customer acquisition.
Frequently asked questions
Is MER the same as ROAS?
No, ROAS usually refers to attributed advertising revenue and advertising expenses.
Sources
- Marketing Efficiency Ratio — · Shopify: Marketing Efficiency Ratio —
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