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Marketing Efficiency Ratio (MER)
Definition:
Marketing Efficiency Ratio (MER) measures total revenue generated compared to total marketing spend.
Formula:
MER = Total Revenue / Total Marketing Spend
Explanation:
Unlike ROAS (which focuses on specific campaigns), MER evaluates overall marketing performance across all channels.
Example:
If a company generates $1M in revenue from $200K marketing spend, MER is 5.0.
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