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MER Report

The Marketing Efficiency Report provides comprehensive insights into your marketing performance metrics, including profitability, revenue, and channel-specific metrics.

Overview

This report allows you to analyze your Marketing Efficiency Rating (MER), Return on Ad Spend (ROAS) across multiple platforms, revenue streams, and contribution margin. The data can be viewed in different time periods including daily, weekly, monthly, quarterly, yearly, or by day of week.

Column Definitions

Revenue and Profitability Metrics

ColumnDescription
Contribution MarginThe profit remaining after subtracting variable costs (including ad spend if configured). Calculated using store-specific settings for monthly costs, per-order costs, and percentage costs.
ECommerce RevenueTotal revenue generated from your eCommerce store, excluding refunds when configured.
Total SpendSum of all marketing and advertising costs across all platforms.
Marketing Efficiency Rating (MER)The ratio of total eCommerce revenue to total marketing spend. Calculated as Revenue ÷ Spend. Higher values indicate more efficient marketing.
Acquisition RevenueRevenue attributed to new customers only.
Acquisition SpendMarketing spend specifically allocated to acquiring new customers.
Acquisition MER (aMER)The ratio of new customer revenue to acquisition spend. Calculated as New Revenue ÷ Acquisition Spend. Measures efficiency of customer acquisition efforts.

Amazon Metrics

ColumnDescription
Amazon RevenueTotal revenue generated through Amazon marketplace.
Amazon Acq. RevenueRevenue from new customers acquired through Amazon.
Amazon SpendTotal advertising spend on Amazon's platform.
Amazon MERThe ratio of Amazon revenue to Amazon ad spend. Calculated as Amazon Revenue ÷ Amazon Spend.
Amazon aMERThe ratio of new customer Amazon revenue to Amazon ad spend. Measures efficiency of customer acquisition on Amazon.

Platform-Specific Metrics

Each advertising platform has three standard metrics:

Facebook

ColumnDescription
Facebook Ad SpendTotal amount spent on Facebook advertising.
Facebook Conversion ValueThe total revenue attributed to Facebook ad campaigns.
Facebook ROASReturn on Ad Spend for Facebook campaigns. Calculated as Conversion Value ÷ Ad Spend.

Google

ColumnDescription
Google Ad SpendTotal amount spent on Google advertising platforms.
Google ReturnThe total revenue attributed to Google ad campaigns.
Google ROASReturn on Ad Spend for Google campaigns. Calculated as Return ÷ Ad Spend.

Bing

ColumnDescription
Bing Ad SpendTotal amount spent on Microsoft Bing advertising.
Bing ReturnThe total revenue attributed to Bing ad campaigns.
Bing ROASReturn on Ad Spend for Bing campaigns. Calculated as Return ÷ Ad Spend.

AppLovin

ColumnDescription
AppLovin Ad SpendTotal amount spent on AppLovin mobile advertising platform.
AppLovin Conversion ValueThe total revenue attributed to AppLovin ad campaigns.
AppLovin ROASReturn on Ad Spend for AppLovin campaigns. Calculated as Conversion Value ÷ Ad Spend.

Criteo

ColumnDescription
Criteo Ad SpendTotal amount spent on Criteo retargeting and display advertising.
Criteo Conversion ValueThe total revenue attributed to Criteo ad campaigns.
Criteo ROASReturn on Ad Spend for Criteo campaigns. Calculated as Conversion Value ÷ Ad Spend.

Pinterest

ColumnDescription
Pinterest Ad SpendTotal amount spent on Pinterest advertising.
Pinterest Conversion ValueThe total revenue attributed to Pinterest ad campaigns.
Pinterest ROASReturn on Ad Spend for Pinterest campaigns. Calculated as Conversion Value ÷ Ad Spend.

Snapchat

ColumnDescription
Snapchat Ad SpendTotal amount spent on Snapchat advertising.
Snapchat Conversion ValueThe total revenue attributed to Snapchat ad campaigns.
Snapchat ROASReturn on Ad Spend for Snapchat campaigns. Calculated as Conversion Value ÷ Ad Spend.

TikTok

ColumnDescription
TikTok Ad SpendTotal amount spent on TikTok advertising.
TikTok Conversion ValueThe total revenue attributed to TikTok ad campaigns.
TikTok ROASReturn on Ad Spend for TikTok campaigns. Calculated as Conversion Value ÷ Ad Spend.

Rakuten

ColumnDescription
Rakuten CommissionsFees paid to Rakuten for affiliate marketing or marketplace sales.
Rakuten Conversion ValueThe total revenue attributed to Rakuten.
Rakuten ROASReturn on commissions paid to Rakuten. Calculated as Conversion Value ÷ Commissions.

Other

ColumnDescription
Other (Manual) SpendManually entered marketing expenses that don't fit into the other platform categories.

Report Features

  • Automatic Column Hiding: Platforms with no data are automatically hidden from the report view
  • Comparison Mode: Compare current data with previous periods
  • Goals Integration: Compare actual performance against defined goals
  • Multiple Time Period Views: View data by day, week, bi-weekly, month, quarter, year, or day of week
  • Visualizations: Includes charts for MER and aMER trends with goal comparisons
  • Currency Formatting: All monetary values are displayed in your store's currency

Interpreting Results

  • MER > 1: Your marketing is generating more revenue than cost
  • ROAS > 1: The specific ad platform is generating more revenue than cost
  • Positive Goal Colors: Indicates metrics that are meeting or exceeding goals
  • Negative Goal Colors: Indicates metrics that are falling short of goals

Technical Details

The calculation logic includes handling of:

  • Currency formatting based on store settings
  • Revenue definitions that can include or exclude tax and shipping
  • Contribution margin calculations that can include or exclude customer acquisition costs
  • Comparison metrics with color coding against goals or previous periods
  • Averages calculations across the selected date ranges