It shows total revenue divided by total ad spend, so it captures performance across all campaigns instead of isolated ad sets. Watching marketing efficiency ratio over time reveals whether scaling budgets actually improves or just inflates costs. When MER dips, it signals wasted spend, even if individual ROAS looks fine. Pairing it with spend spikes, conversion patterns, and audience shifts helps diagnose where efficiency breaks down. Optimizing toward a stable or rising MER forces better creative, targeting, and retention alignment. Over time it becomes a simple truth metric for growth health.