Marketing Economics glossary

What Is Marketing Efficiency Ratio (MER)?

Definition

Marketing efficiency ratio is total business revenue divided by total marketing spend for the same period.

How Marketing Efficiency Ratio (MER) Works

If a business generates $500,000 in revenue on $100,000 in marketing spend, MER is 5.0.

A Simple Example

MER provides a blended view when customers touch several channels and platform attribution overlaps.

Why Marketing Efficiency Ratio (MER) Matters

It anchors channel reports to company-level sales and spend.

Common Misreading

MER can improve because of seasonality, pricing, repeat customers or organic demand—not only because marketing became more effective.