Social Roots

Knowledge base · Data & measurement

MER

MER stands for Marketing Efficiency Ratio: your total revenue divided by your total marketing spend.

Platforms love claiming the same order. MER looks above that: it compares everything that came out with everything that went in, regardless of which channel takes the credit.

It is the balance figure above individual campaigns. ROAS per platform can look wonderful while MER sinks because channels cannibalise each other.

MER says nothing about where things go wrong, but whether the whole is healthy. If the ratio slides for months in a row, it is time to review channel mix and the top of the funnel.

How we do it

We report MER alongside platform figures, so you see what marketing delivers as a whole.

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Related terms

ROAS

ROAS stands for Return On Ad Spend: the revenue you get back per euro of advertising budget.

Attribution

Attribution is assigning a conversion to the channels and touchpoints that contributed to it.

POAS

POAS is Profit On Ad Spend: profit per euro of ad budget, so ROAS with margin factored in.

Funnel

A funnel describes the route from stranger to customer, split into stages that each have their own purpose.

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