What is MER (Blended ROAS Inverse)?
Understanding MER (Blended ROAS Inverse) in E-commerce
Quick Definition
MER (Marketing Efficiency Ratio) is a holistic marketing performance metric that measures total revenue against total marketing spend, providing a comprehensive view of marketing effectiveness across all channels. Unlike traditional ROAS, MER considers the cumulative impact of marketing efforts rather than channel-specific performance.
Understanding Marketing Efficiency Ratio (MER)
MER Calculation Method
MER = Total Revenue ÷ Total Marketing Spend
Example Calculation:
Total Monthly Revenue: $100,000
Total Marketing Spend: $20,000
MER = $100,000 ÷ $20,000 = 5.0
Why MER Matters in E-commerce
- •Holistic Performance View: Captures total marketing impact across all channels
- •Strategic Decision Making: Helps optimize overall marketing investment
- •Comprehensive Measurement: Goes beyond single-channel performance tracking
MER Benchmarks by Industry
| Industry | Average MER | Strong Performance |
|---|---|---|
| E-commerce | 3.0 - 4.5 | 5.0+ |
| SaaS | 4.0 - 6.0 | 7.0+ |
| Subscription Services | 5.0 - 7.0 | 8.0+ |
Advanced MER Optimization
Modern e-commerce businesses are moving beyond channel-specific metrics to understand comprehensive marketing performance. Tools like Growth Suite enable merchants to track holistic marketing efficiency by providing detailed analytics that show how different marketing efforts contribute to overall revenue generation.
The key is to continuously monitor and optimize your marketing mix, understanding that MER provides a more nuanced view of marketing effectiveness than traditional single-channel metrics.
Put MER (Blended ROAS Inverse) into Practice
Ready to apply these concepts to your store? Growth Suite provides the tools you need to implement effective mer (blended roas inverse) strategies.
Other Terms in "M"
- Machine Learning
- Manual Action
- Manual Collection
- Margin
- Marketing Automation
- Marketing Efficiency Ratio (MER)
- Marketing Funnel
- Marketing Mix