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Running an e-commerce brand in Egypt this year is all about being good with money. People who own these brands have to deal with a lot of problems like not being able to use all the money they want for ads because of rules about money and people not paying for things they bought online in some parts of the country. If you only look at how money you are making from your ads on Meta or Google you might be taking a big risk with your money.
For a time people who do marketing online just looked at how much money they were making from their ads to see if they were doing a good job.. That is not a good way to do things anymore. Now people who own brands are looking at something called the Marketing Efficiency Ratio or MER. This is a better way to see if your marketing is working. If you want your online store to do well and grow you need to work with a Performance marketing agency for ecommerce Egypt.
What is MER?
The Marketing Efficiency Ratio is a way to see how healthy your business is. You calculate it by dividing the amount of money your store makes by the total amount of money you spend on marketing. It is like looking at your finances from a picture perspective.
ROI tries to figure out which specific ad made someone buy something. Mer looks at all your marketing spending as a whole. It does not try to guess which ad worked it just looks at how all your marketing spending’s doing compared to how much money your business is actually making.
1. The Problem with Figuring Out What Works
It is really hard to track what is working and what is not with ads these days. Because of rules from Apple and Google ad platforms are not very good at tracking what people do online. If someone sees your ad on Meta thinks about it and then searches for your brand on Google to buy something both Meta and Google will try to take credit for the sale. This makes your ROI numbers look better than they really are which can trick you into thinking you are making more money than you really are.
To fix this problem a Performance marketing agency for ecommerce Egypt will stop using the way of tracking ads. Instead they will use a way of tracking that is connected directly to your online store. This will give you a picture of what is really going on with your business.
2. The Rise of Automation
Ad platforms are using automation more and more. They use tools like Google’s Performance Max and Meta Advantage+ suites to run ads. These tools mix together types of ads and do not give you a clear picture of what is working. Because the platforms are optimizing themselves, the ROI numbers they give you might not be accurate.
To deal with this you need to look at your business, not just individual ads. A Performance marketing agency for ecommerce Egypt can help you do this by looking at your MER on a basis. By trying to figure out if an individual ad is working they will look at how your whole business is doing and make sure the ad platforms are really working for you.
3. The Problem with People Buying Things in Different Ways
People do not usually buy things online. They might see an ad on TikTok read something on LinkedIn and then buy something later on WhatsApp or Messenger. Traditional ROI metrics do not account for this; they only look at the click before someone buys something.
Using MER helps you see your marketing channels as working not against each other. A Performance marketing agency for ecommerce Egypt will design your ads to work together and make sure that you are not turning off ads that are actually working.
4. The Problem with Focusing on Existing Customers
It is easy to get fooled by ROI numbers that look good. Are actually just from existing customers. While it is good to keep existing customers you also need to find new customers to grow your business. If you are only spending money on ads that target existing customers you are not really growing your business.
Using MER helps you focus on finding customers and growing your business. A Performance marketing agency for ecommerce Egypt will help you separate your ad spending so that you are not just targeting existing customers.
5. The Difference Between What Ad Platforms Say and What is Really Going On
Ad platforms do not have a picture of your business. They do not know how much it costs you to make and sell your products or how money you are actually making. If you only look at ROI numbers from ad platforms you might think you are making more money than you really are.
Using MER helps you tie your ad spending to your business finances. A Performance marketing agency for ecommerce Egypt will help you integrate your ad spending with your business finances so you can see the picture.
6. Scaling Your Business Without Being Afraid
When you try to grow your business by spending money on ads your ROI numbers might go down. This is normal. It can be scary if you are not used to it. If you only look at ROI numbers you might get afraid. Stop spending money on ads, which can hurt your business.
Using MER helps you scale your business safely. Performance marketing agency for ecommerce Egypt will help you set a target for your MER and make sure you are meeting it even when you are spending money on ads.
7. Keeping Your Business Financially Healthy
At the end of the day you need to make sure your business is financially healthy. You need the best Performance marketing agency for ecommerce Egypt to make sure you have money to pay your suppliers, your team and yourself. Using MER helps you keep your business healthy by tying your ad spending to your actual business finances.
Final words
Using fashioned ROI metrics is not a good way to run an e-commerce business today. To build a business you need to use MER to get a realistic view of your marketing efficiency. Partnering with a Performance marketing agency for ecommerce Egypt can help you do this and ensure your business is financially healthy and growing.