Formula
Marketing Efficiency Ratio = ( Total Ad Spend ÷ Total Revenue ) × 100
Formula Components
Example
Your store generated $250,000 in order revenue while spending $50,000 on ads:
A 20% MER means you spent $0.20 on ads for every $1.00 of revenue. Lower MER indicates better efficiency—you’re keeping more of each revenue dollar.
How It Works
MER divides your total advertising spend by your total order revenue, then multiplies by 100 to express it as a percentage. Unlike ROAS (which is Revenue ÷ Spend), MER shows the inverse—what fraction of your revenue goes to advertising. Lower MER values indicate better efficiency.When to Use
Related Metrics
See all Performance metrics →