E-commerce Glossary

MER (Marketing Efficiency Ratio)

Ratio of total revenue to total marketing spend.

MER provides a macro-level view of marketing efficiency. Formula: MER = Total Revenue / Total Marketing Spend. A MER of 5 means every marketing dollar generates $5 in revenue. Unlike per-channel ROAS, MER eliminates attribution problems and reflects business reality. It's the preferred metric of CFOs and DTC brands for managing overall marketing budgets.

Related terms

AOV (Average Order Value)Average amount spent per order in your store.See definition ARPU (Average Revenue Per User)Average revenue generated per user over a given period.See definition Blended CACAverage acquisition cost including all marketing channels.See definition Blended ROASOverall return on all advertising spend combined.See definition CAC (Customer Acquisition Cost)Total cost to acquire a new customer.See definition Churn RatePercentage of customers lost over a given period.See definition

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