Marketing efficiency ratio
Calculator.
We compare whole-store revenue with spend in the same period.
Your assumptions
Illustrative defaults only, never Further or client figures. Currency is AUD, excluding GST. Enter 20 for 20%. Optional fields can stay blank or zero. Your inputs stay on this page.
Scenario result
Marketing efficiency ratio
4×
- Total marketing efficiency
- 4×
- Ad spend share of revenue
- 25%
- Revenue needed for target MER
- A$100,000.00
4.00x means every dollar of advertising brought back 4.00x across the whole store, attribution included or not. Your target needs A$100,000 of revenue against the same spend. MER drifts with your mix, so read it over months rather than weeks, and read it beside contribution so a discount can't look like a win.
The maths
MER = 100,000 / 25,000.
Total marketing efficiency = 100,000 / (25,000 + 0).
Ad spend share = 25,000 / 100,000 × 100. Target revenue = 25,000 × 4 = 100,000 AUD.
Before you use it
MER includes all store revenue, including organic and repeat sales. It isn't attributed ROAS and doesn't establish that advertising caused those sales.
This is a planning scenario, not a forecast or financial advice. Compare it with your actual order and customer records before changing spend.
Questions worth asking
Is MER the same as ROAS?
No. MER uses whole-store revenue. Attributed ROAS uses revenue assigned to advertising by an attribution model. Compare MER across consistent periods and revenue definitions.
What happens with zero ad spend?
MER shows N/A rather than infinity. Broader marketing efficiency can still be calculated when other marketing spend is positive.
Keep working through the numbers
Put the numbers to work.
We can look at the assumptions with you and decide what to test next.