If blended MER is healthy and aMER is not, you are funding retention with acquisition dollars and calling it growth.
aMER is total new-customer revenue divided by paid media spend in the same period. It strips out subscriptions, post-purchase upsells, email-driven repeat orders, and everything else the returning customer base contributes. What is left is the question you actually want paid media to answer: did the spend buy new buyers, at what efficiency.
Why blended hides the problem.
Take a brand running at 3.0 blended MER with 60% returning customer revenue. The acquisition layer is doing closer to 1.2 MER on new buyers. If gross margins are 50%, those two reads are not in the same conversation. The brand isn't failing. The read is. And the read decides where the next dollar goes.
The hierarchy in one line.
- aMER is the primary KPI for whether acquisition is healthy.
- Blended MER is a finance metric for cashflow and spend ceiling planning.
- Incrementality tests (geo-lift, holdout) sit underneath both as the upper bound on causal claims.