Marketing efficiency ratio: How to calculate and improve yours
The marketing efficiency ratio (MER) measures how much revenue marketing generates for every dollar spent. MER is calculated by dividing total revenue by total marketing spend for a defined period. Unlike ROAS, which focuses on the return of specific ad campaigns, MER gives a blended, executive-level view of overall marketing effectiveness across all channels. A higher MER indicates more efficient marketing performance, although what counts as “good” depends on margins, customer behavior, and business model.
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