Also called blended ROAS, MER ignores attribution entirely. That is its strength: it cannot be inflated by platforms claiming the same sale, and it reflects organic demand that marketing creates indirectly.
Use MER as the top-level health check and platform ROAS for decisions inside each channel. If platform ROAS rises while MER falls, attribution is probably over-claiming.
Formula
MER = Total revenue ÷ Total marketing spend
Example
₹1.6 crore of monthly revenue on ₹20 lakh of total marketing spend is an MER of 8.
Convert between ROAS and ACoS instantly, calculate TACoS and MER, and see the break-even point for your margin.
Related terms
- ROAS (return on ad spend)ROAS is the revenue attributed to advertising divided by the cost of that advertising.
- Blended CACBlended CAC is total marketing spend divided by all new customers, whatever channel they came from.
- Multi-touch attributionMulti-touch attribution assigns credit for a conversion across the several marketing touchpoints that preceded it.
Part of the growth marketing glossary by Shiva Sharma.