Library · Traffic · How to run this
MER is not contribution
MER = revenue ÷ spend. Contribution = revenue − COGS − fees. Contribution MER = contribution ÷ spend. Type spend $, revenue $, COGS $, and fees $.
Pair: MER vs contribution on Traffic. Refund lag: lag-adjusted MER. Bid cap: min ROAS.
What you type
Spend $ — ad / media spend for the window.
Revenue $ — booked revenue on the same window (same definition you use for MER).
COGS $ — cost of goods for those sales (typed landed, not a blog margin).
Fees $ — payment / marketplace / variable fees you subtract for contribution.
Raw MER = revenue ÷ spend. Contribution = revenue − COGS − fees. Contribution MER = contribution ÷ spend. Bid on contribution MER — do not invent a MER chip.
What not to do
Do not invent a MER. Do not mix open refunds into revenue without also reading lag-adjusted MER. Do not treat platform MER as contribution. Do not ignore fees because COGS looks fine.
Related: Traffic, lag-adjusted MER, min ROAS, blended CAC.
Procedure
- Type spend and revenue for the window.
- Type COGS and fees for those sales.
- Bid on contribution MER, not raw MER alone.
Failure modes
- Inventing a MER.
- Treating platform MER as contribution.
- Ignoring fees because COGS looks fine.
Worked example
None on this page yet. When one lands it will be a real case: what broke, the number, and what changed. Not a composite.
Glossary
- Contribution MER
- (Revenue − COGS − fees) ÷ spend. Raw MER is revenue ÷ spend before those deductions.
Work with us — We run this job on your accounts. Services
FAQ
- Is this lag-adjusted MER?
- Related MER. [Lag-adjusted MER](/manuals/refund-lag-mer) subtracts open refunds. This page subtracts COGS and fees for contribution MER.
- Is this min ROAS from contribution?
- Related bid cap. [Min ROAS](/manuals/roas-target) sets a target from contribution. This page compares raw MER to contribution MER on typed books.
- What MER should I invent?
- None. Type spend and revenue from the same window export.