Media Efficiency Ratio (MER) - Episode 26
Success isn’t in what you count—it’s in what counts
Welcome to the 26th Edition of Marketing Concepts!
Think of dieting: counting calories in a single meal won’t transform your health. True success comes from consistent habits—balanced eating, regular movement, and proper rest over time.
MER is the media and marketing equivalent. It doesn’t fixate on individual campaign wins but instead captures the big picture: is your entire strategy driving sustainable growth?
In a world addicted to micro-metrics, MER shifts your focus to what truly matters—long-term performance and impact.
Here’s what we’ll explore in this episode:
What is MER?
Why does it matter?
How can you apply it?
The Simple Truth About MER
Media Efficiency Ratio = total revenue / total media spend, is the heartbeat of your media strategy, measuring the impact of every dollar spent.
Unlike return on ad spend (ROAS), which is often isolated to specific campaigns, MER is refreshingly holistic. It doesn’t get lost in the weeds of attribution wars where every channel fights for credit.
Think of your media and marketing budget as the fuel for a journey. While ROAS measures how efficiently each step is taken, MER reveals how far you’re truly progressing toward your destination. After all, what’s the point of perfect steps if they don’t take you anywhere?
Why Does It Matter?
Media and marketing budgets are no longer bottomless pools of cash. Every dollar is scrutinised, stretched, and expected to deliver results. So, why does MER deserve your attention?
Simplicity in Complexity: In a world obsessed with micro-metrics, MER cuts through the noise to reveal whether your overall media & marketing efforts are working.
Sharper Decisions: MER helps you see the forest, not just the trees. If revenue is climbing but MER is slipping, it’s a warning sign of inefficiency. When MER improves, your strategy isn’t just working—it’s thriving.
Team Alignment: By focusing on total performance, MER promotes collaboration, turning media, marketing, and sales teams into a unified force.
Clarity Over Chaos: Forget the endless debate over which ad sealed the deal. MER shifts the focus to collective success over individual wins.
How to Apply It
Calculate Your MER: Start simple. Divide total revenue by total media spend. If the number is above 4x, you’re in healthy territory. Below 3x? Time to optimise.
Create Scenarios: Use MER as a guiding star. Test how changes in spend, channel mix, or creative assets impact the overall ratio.
Focus on Margins: A high MER is great, but make sure it aligns with profitability. You don’t want to generate revenue at the expense of your margins.
Use Tools Wisely: Tools like Triple Whale and Lifetimely are built to help you track MER across channels without losing your sanity.
Closing Thoughts
In the end, MER is less about the math and more about the mindset. It reminds us to think bigger, act smarter, and prioritise outcomes over optics.
Challenge for You: Take 15 minutes today to calculate your MER. Where do you stand? More importantly, what does that number tell you about the story of your media & marketing strategy?
Success in marketing isn’t just about being efficient—it’s about being effective. And when you let MER be your guide, you’re not just running the race. You’re winning it.
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