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If you only look at Facebook Ad Metrics, you’re judging ad performance, not the business.
Meta Ads gives you plenty of numbers: ROAS, CPA, CPM, CTR, CPC.
And they can all look great…
while the business quietly struggles.
That’s why we don't only look at ad metrics.
We look at MER - Marketing Efficiency Ratio.
Because MER doesn’t tell you how ads perform. It tells you where the business is heading.
What is MER (Marketing Efficiency Ratio)?
MER tells you how your whole marketing actually works for your business.
The formula is simple:
👉 MER = Total Revenue ÷ Total Marketing Spend
In other words:
If your business made €200,000 in revenue over a period and you spent €50,000 on all marketing in that same period, your MER is 4.
Every €1 in marketing generated €4 in revenue.
What Is Included in MER?
This is where MER really separates itself from ROAS, CPA, CPM.
MER doesn’t care where the sale came from.
It looks at everything you spend on marketing to generate revenue.
That usually includes:
All paid media spend
Meta Ads, Google Ads, TikTok Ads etc.
Internal & External marketing costs
Salaries, agencies, content production, software.
Offline marketing spend
TV, radio, billboards, print, events.
Any other marketing costs
If the goal is to bring in customers, include it in MER
What is a "good" MER
MER only becomes useful once you know what’s healthy and what’s dangerous.
Here’s a simple way to read it:
5.0+ MER → Excellent Strong profitability.
4.0+ MER → Efficient Good margins.
3.0–4.0 MER → Average/Sustainable
2.0–3.0 MER → Okay Still alive, but little room for mistakes.
1.0–2.0 MER → Low. Near break-even.
Below 1.0 MER → Poor. You’re losing money.
This already tells you more about your business health than any single-platform ROAS ever will.
MER Benchmarks by E-commerce Industry
Not all businesses should chase the same MER.
Margins, markets, buying behavior, and repeat purchases matter a lot.
*General Benchmark by category:
Fashion & Apparel: 2.8–4.2
Electronics & Tech: 3.2–4.8
Home & Garden: 3.5–5.0
Beauty & Personal Care: 3.0–4.5
Food & Beverage: 2.5–3.8
Sports & Fitness: 3.2–4.6
Jewelry & Accessories: 4.0–6.0
Books & Media: 2.8–4.0
Pet Supplies: 3.5–5.2
Automotive & Parts: 3.8–5.5
If your MER is below your industry range, ads aren’t the real problem.
The business model is.
MER by Business Model
Two companies in the same industry can have completely different business models and therefore, very different MERs.
*Benchmarks by business model:
DTC Brands: 3.2–4.8
Higher margins + Control over distribution.
Marketplace Sellers: 2.5–3.8
Platform fees + price competition = lower MER.
Subscription Services: 3.5–5.5
MER goes higher over time.
Luxury/Premium Brands: 4.0–6.5
Brand power + High margins.
Budget/Value Products: 2.8–4.0
High volume needed + Thin margins.
This is why copying someone else’s MER goal is dangerous.
Conclusion
You can have amazing ROAS, cheap CPAs and “winning” ads
…and still be slowly killing your business.
Because platforms don’t know:
Your margins
Your acquisition costs
Your total marketing costs
Meta tells you how ads perform.
MER tells you if the business survives.
That’s the part most small businesses and e-commerce brands miss.
🍩 Snackable Challenge
Before you look at Ads Manager again, calculate your MER for the last year and this year Q1-Q3.
MER = Total Revenue ÷ Total Marketing Spend
If you don’t know your MER, you don’t know if your ads are helping or hurting your business.
*Source used for Benchmark data: Cuped
The Future of Shopping? AI + Actual Humans.
AI has changed how consumers shop, but people still drive decisions. Levanta’s research shows affiliate and creator content continues to influence conversions, plus it now shapes the product recommendations AI delivers. Affiliate marketing isn’t being replaced by AI, it’s being amplified.
How did you like this issue? (Be honest please)
♥️ Tools we love to use at my agency:
My ultimate list of FREE Ad Libraries for spying on competition and inspiration
Get my FREE Facebook Ads Hook Library and make it yours.
My favorite FREE newsletters on Ads & Media Buying.
For Ad Creative Inspiration in almost every niche: Magritte.
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#1 Newsletter Builder platform for founders, creators, writers (website, automations, quizzes) Beehiiv. Get 30-days Free Trial + 20% OFF for 3 months with this link.
Email Marketing tools for e-commerce Klaviyo or Mailerlite. We choose the one that fits our client’s needs between these two.
Best Pop-up Tool for e-commerce to grow your email list: Optimonk
Our go to No-Code Drag & Drop website and landing page builder with 170+ prebuilt templates: Sitejet
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