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Marketing Efficiency Ratio (MER)

MER = Total Company Revenue / Ad Spend Given the challenges with attribution that have resulted from privacy changes within techno...

Updated today

MER = Total Company Revenue / Ad Spend

Given the challenges with attribution that have resulted from privacy changes within technology platforms (i.e. iPhone default pixel blocking), we like to look at how advertising spend impacts the total business, not just the direct-to-consumer (DTC) channels – although we also see some reasons to follow DTC ROAS as well. This is much more important for companies that have both DTC and B2B revenue channels.

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