MER (Marketing Efficiency Ratio)
Total revenue divided by total ad spend across all channels. Channel-agnostic; resistant to attribution gaming.
Last updated: 2026-05-04
Definition
MER = total business revenue / total ad spend, full stop. Because it doesn't try to assign credit to channels, it can't be gamed by attribution model choice. Less informative than per-channel ROAS for budget reallocation, but more honest as a top-line CFO metric. Use MER to track health; use Bayesian MMM to reallocate.
How it applies in India
No India-specific behavior.
Related terms
- ROAS (Return on Ad Spend)Revenue generated per dollar spent on advertising. ROAS = revenue / spend. A ROAS of 3.0 means $3 revenue for every $1 spent.
- CAC (Customer Acquisition Cost)Total marketing + sales spend divided by new customers acquired in the period.
- CPA (Cost Per Acquisition)Spend per conversion event (purchase, lead, signup) — channel-level.
Try WatEase free
Run your WhatsApp commerce on the platform built for India — Cloud API, GST invoices, UPI checkout, opt-in tracking, and a Free Forever plan.
Start Free Today