Compare MER and ROAS for product campaigns
By Drizzle team
1 min read
A blended revenue ratio and an attributed advertising ratio answer different questions.
Define both numbers
Marketing efficiency ratio divides all store revenue by all marketing spend. ROAS divides attributed revenue by the spend assigned to a campaign or channel.
Use the same window
Check refunds, currency, and reporting dates. A platform attribution change can move ROAS while the store-level ratio stays steady.
Make a decision
Use MER for the broad business view and ad metrics for a campaign view. Neither equals profit.
A worked example
A store records $12,000 total revenue and $3,000 total marketing spend, so its blended ratio is 4×. An ad account may report 6× ROAS because its attribution window claims part of those sales. Both numbers can be calculated correctly while answering different questions. Track store contribution and the attribution settings before deciding that the campaign created every counted order.
Decision check
Keep the numerator, denominator, date range, currency, and attribution definition with every reported result. A metric describes one part of the shopper path; compare it with visits, purchases, and order contribution before changing the creative or budget. State what the observation cannot establish.