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Marketing efficiency ratio (MER) calculator
Enter total revenue and total ad spend across all channels to get the marketing efficiency ratio, and compare it with the ROAS your ad platforms report.
Marketing efficiency ratio
Enter your numbers to see the result.
Free tool by Telehealth Media · telehealthmedia.com
Compare with ROAS for a single campaign.
How it works
The marketing efficiency ratio divides all revenue by all ad spend. It ignores attribution: it does not care which channel gets credit.
- MER = total revenue / total ad spend
- Ad spend as a share of revenue = total ad spend / total revenue x 100
Enter the ROAS your platforms report to see the gap. Platforms often claim more combined revenue than the business actually took in, because several can count the same sale.
Worked example
A brand took 900,000 USD in revenue in a month and spent 300,000 USD on ads across all channels.
| Step | Calculation | Result |
|---|---|---|
| MER | 900,000 / 300,000 | 3.00x |
| Ad spend share of revenue | 300,000 / 900,000 x 100 | 33.3% |
These numbers illustrate the formula; enter your own.
Telehealth notes
- Subscription revenue includes refills from patients acquired months ago, so MER rises as the patient base grows even when new-patient efficiency falls. Track new-patient revenue separately if you can.
- Health data limits on Meta reduce what the platform can attribute, which widens the gap between platform ROAS and MER.
- Use MER for the whole budget and ROAS for comparing campaigns inside one platform.
Questions
What is the marketing efficiency ratio?
Total revenue divided by total ad spend over the same period, across every channel.
How is MER different from ROAS?
ROAS uses revenue a platform attributes to its own ads. MER uses all revenue and all spend, so it is not affected by attribution.
Are my numbers stored?
No. The calculation runs in your browser and nothing is sent to us.