MER (Marketing Efficiency Ratio)
Total revenue divided by total marketing spend — a blended, platform-agnostic measure of marketing efficiency.
Full Definition
MER = total revenue ÷ total marketing spend (across all channels). Unlike platform ROAS (which depends on attribution windows and tracking), MER is a top-down ratio anyone can calculate from the P&L. For furniture brands, healthy MER typically runs 3x-6x depending on category, channel mix, and lifecycle.
Trending MER over time is more useful than measuring it absolutely, because the trend reveals whether marketing investment is producing leverage.
Why It Matters for Furniture Brands
After iOS 14 broke attribution, MER became the most reliable cross-platform performance metric. Brands that switched to MER-based decision-making weathered the attribution collapse better than brands that kept chasing platform-reported ROAS.
Related Terms
Return on Ad Spend (ROAS)
📊The revenue generated for every dollar spent on advertising — the key metric for measuring furniture ad campaign profitability.
Marketing Attribution
📊Determining which marketing channels and touchpoints deserve credit for driving a furniture sale.
Contribution Margin
📣The dollar amount left from a furniture sale after subtracting variable costs — the true unit economics of an order.
Further Reading
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