The marketing efficiency ratio (MER) shows how much revenue your marketing efforts produce for every dollar you invest. To find MER, you divide total revenue by total marketing spend over a chosen time frame. Unlike ROAS, which evaluates the return of individual ad campaigns, MER offers a blended, high-level perspective on how effective all marketing activities are across every channel. A higher MER signals more efficient marketing, though what qualifies as “strong” performance varies based on profit margins, customer behavior, and your overall business model. As search, analytics, and attribution tools advance, marketing efficiency and MER have become core metrics for marketers, revenue leaders, and finance teams. MER reflects the overall impact of marketing investments and helps reveal whether the business is generating sustainable returns. This guide covers what MER is, how to calculate it, when to rely on it, how to improve it, and which supporting metrics you should track. Looking to monitor and optimize MER with unified data? Get started for free with HubSpot. Table of Contents What is the marketing efficiency ratio? How to Calculate Marketing Efficiency Ratio Marketing Efficiency Ratio vs ROAS What is a good marketing efficiency ratio? How to Improve Your Marketing Efficiency Ratio Marketing Efficiency Metrics to Track Alongside MER Marketing Efficiency Ratio Pitfalls to Avoid Frequently Asked Questions About Marketing Efficiency Ratio What is the marketing efficiency ratio? The marketing efficiency ratio (MER) is calculated by dividing total revenue by total marketing spend over a defined period, providing a blended snapshot of how efficiently marketing drives overall revenue. What is MER? MER quantifies the overall effectiveness of your marketing…