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Marketing Efficiency Ratio: How to Find Your Ideal Ad Spend

Common Thread Collective Free Intermediate

The best explanation available of why blended MER, not campaign level ROAS, should decide whether you scale, with the actual formula for finding your own breakeven point instead of chasing an arbitrary target.

  • MER equals total revenue divided by total ad spend, a north star metric distinct from ROAS which is scoped to one campaign or channel.
  • Introduces marginal aMER: track the efficiency of your next increment of spend, not your account average.
  • A worked example puts breakeven marginal aMER around 1.5 on a 70% gross margin business, showing the target depends entirely on your own margin.
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The question it answers

  1. Which Meta Ads Manager metrics actually matter, and how do I read them?

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