mer = Total sales revenue (over Specific time) / Total MARKETING spend (over the same period, across all channels)
How do MERs work? The MER is expressed as an annualized percentage of daily average net asset value during the period. For example if a fund's MER is 0.78%, this means the fund incurs annual costs of $78 for every $10,000 invested in a given year.
The calculation is simple. Total revenue divided by total ad spend. Similar to ROAS, MER is expressed as a ratio. $15k in revenue on $5k in spend equals an MER of 3.0.
Marketing Efficiency Ratio, or MER, is a metric that allows you to see the impact of how all marketing channels are working together. Rather than just calculating based on the direct revenue associated with your ad campaign, you calculate based on total company revenue.
The management expense ratio (MER) – also referred to simply as the expense ratio – is the fee that must be paid by shareholders of a mutual fund or exchange-traded fund (ETF). The MER goes toward the total expenses used to run such funds.
The MER or expense ratio represents the total cost of managing and operating a fund and is given as a percentage of the fund's total assets.
In conclusion, the fees you pay for investment products and services will have a significant impact on whether you are successful in achieving your investment goals over the long term. Aim for a “good MER” of 0.25% to 0.75% by investing in ETFs and using a private investment management firm to manage your portfolio.
Calculating MER
As an example, say your last marketing campaign generated $10,000 in revenue from a $5,000 ad spend: You divide $10k by $5k (total revenue by total ad spend) That gives you an MER of 2 (10,000/5,000 = 2) We can express this total as a ratio, meaning MER in this example is 2.0.
MER is digital complex baseband signal-to-noise ratio (SNR) and is the ratio, in decibels, of average symbol power to average error power. MER is, in effect, a measure of the “fuzziness” or spreading of a constellation's clouds of plotted symbol points.
The TER is independent of a fund's MER. It typically does not apply to fixed income transactions since commissions for fixed income funds are already embedded in the price of a bond. The TER aggregates all of the trading costs incurred by a fund over the course of a year and is expressed as a percentage of assets.
The prospectus/simplified prospectus describes the investment objectives of various Manulife mutual funds, the manner in which each fund is administered and operated, associated fees and other pertinent information.
Bottom Line. A 1% annual fee on a multi-million-dollar investment portfolio is roughly typical of the fees charged by many financial advisors. But that's not inherently a good or bad thing, but rather should hold weight in your decision about whether to use an advisor's services.
MERs are expressed as a percentage of the average dollar amount of a mutual fund investment. For example, if you invested $10,000 in a Canadian balanced fund, with a MER of 2.5%, the fee would be about $250.
A Management Expense Ratio (MER) represents the costs associated with owning a mutual fund. It indicates how much a fund pays in management fees and operating expenses (including taxes) on an annual basis. MERs are expressed as a percentage of the daily average net assets during the year.
Marketing Efficiency Ratio (MER) is calculated by taking total revenue derived from marketing, and dividing it by your total marketing spend over any given time frame.
Key Differences: While MER offers a broad perspective on marketing effectiveness, ROAS provides a more granular analysis of individual campaign performance. MER supports long-term planning and strategic adjustments, whereas ROAS aids in refining specific campaigns.
ROAS = revenue attributable to ads / cost of ads (ad spend)
To better understand this, let's say you ran an ad campaign and spent $1000 on ads that you can attribute $3000 revenue to. Using the above formula, you can determine an ROAS of $3.
First thing's first: there is no such thing as a universally “good” MER. Although it's common to see a 3x MER referenced as “good” (likely a carryover of the 3x benchmark for LTV to CAC Ratio), a good MER is entirely dependent on your business size, what you're selling, your strategy, and your profitability goals.
Anything above 1.5% is considered high.
The MER is the total of the management fees, operating expenses and taxes, and is deducted from the fund's annual return. Fees can vary greatly, so it's smart to look into each fund's MER, alongside performance projections.
MER stands for management expense ratio — which includes both the management fee, plus the trailing commission and operating expenses such as the administration fee, other fund costs and taxes. It's an important number to review when you're considering a mutual fund.
November 17, 2023. In a nutshell: MER stands for marketing efficiency ratio and measures the effectiveness of marketing efforts. It calculates the balance between marketing budget and outcomes achieved. MER is important for strategic planning and can improve marketing efficiency and ROI.