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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