Jan 6, 2026

Marketing Efficiency Ratio

MER

Total business revenue divided by total marketing spend across all channels. Emerged post-iOS 14 as holistic alternative to platform-specific ROAS.

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Formula:

Total Revenue ÷ Total Marketing Spend

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Benchmarks

Target varies by margin. 3x MER with 33% margins = break-even. Most DTC brands target 3-5x MER.

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Why It Matters

MER solves attribution by ignoring it—instead of debating which channel gets credit, measure total efficiency. Best used alongside platform metrics, not instead of them. Triple Whale and Northbeam popularized this approach.

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Copyright © 2025 Ad Spend Technologies, Inc.
All Rights Reserved

Copyright © 2025 Ad Spend Technologies, Inc.
All Rights Reserved

Copyright © 2025 Ad Spend Technologies, Inc.
All Rights Reserved