In this session we look at Marketing Efficiency Ratio (MER) and why our team uses it as a core metric to growing ecommerce brands.

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Marketing Efficiency Rating (MER) exists to measure every ad dollar out against every revenue dollar in. It answers the big-picture question: How much did we make based on how much we spent?

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The calculation is simple: Total Revenue divided by Total Marketing Investment equals MER

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Example:

$15k in revenue on $5k in spend equals an MER of 3.0.

$15,000 / $5000 = MER of 3.0

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The core reasons for looking at MER are:‍

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1. The challenging landscape of digital measurement

Privacy

Platform Bias

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2. Consumer behaviour is rarely ever linear

Path to purchase

Influence

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How does ROAS fit in:

Useful for in-platform, campaign, ad copy, ad type optimisation

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What is a ‘Good MER’

4.5+

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What are we Really Wanting to know:

When does my next dollar stop making me money

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