Should I use a Currency or a Percentage when calculating ROAS?
% or $ sign, what's right?
Firstly, if you are unsure what ROAS is or how to calculate it, click here.
In essence there is no right or wrong answer to this one. It all comes down to personal/client/your reports preference. Personally, I prefer using ROAS alongside a currency. Whether there be something to the fact that I enjoy seeing a dollar value attributed to my current return on ad spend, or not, I find it easier to consume.
So, to summarize, no there is not a clear right or wrong answer.
Benefits to using %
Good non fiction writing focusses on impartiality. So here are the benefits to using a % over a $ sign.
The major benefit to using a percentage ROAS is in its universal scalability and immediate clarity across different markets. A 300% ROAS is immediately understandable whether you're spending in USD, AUD, EUR, or yen. It’s a pure multiplier.
The Clear 'Multiplier' Effect
When reporting to a client or stakeholder who operates globally, the percentage method cuts through the noise of fluctuating exchange rates. A quick look at a 500% ROAS tells anyone that for every $$$1 they spent, they got $$$5 back. It’s a clean, simple metric that removes the need for mental currency conversions, keeping the focus purely on efficiency. This can be particularly useful for agencies managing accounts in multiple countries.
Furthermore, many advertising platforms (like Google Ads and Meta) often default to showing ROAS as a percentage, especially in automated bidding strategies. Aligning your reporting with the platform’s default view can simplify data comparison and ensure everyone is looking at the same baseline metric. It’s all about consistency and reducing friction in reporting.
Why a Currency ROAS is my Go-To (The 'Hard Cash' Appeal)
You're right, impartial writing demands we give both sides their due. However, I’ll stick to my guns on this one. While percentages are great for international comparison, nothing beats the tangible feel of a currency-based ROAS.
When I see a ROAS of "$$$5.00", it instantly translates to profitability and budget allocation. I know, without any further calculation, that I’m making $$$5 back for every $$$1 invested. This is invaluable when sitting in a board meeting or presenting to a finance department. Finance teams think in absolute currency values—they care about the net return that hits the bank account.
A $$$5.00 ROAS provides a clear, actionable threshold. It allows for quick calculation of your Minimum Acceptable ROAS (MAR). We're moving from a generic metric discussion to a definitive business application. It’s about being able to say, "We need to hit $$$4.50 ROAS to cover all costs and achieve our desired margin." That figure is far more impactful and easier to budget against than a percentage.
The Definitive Final Verdict
So, which one wins the battle?
The definitive answer is: Use both if you can.
For your high level executive summaries and multi market reports, use the percentage (%) to show efficiency. For your daily optimization, budget setting, and detailed financial reports, use the currency ($) to show profitability.
Pro-Tip for Maximum Clarity: Include a small note on all reports to define your preference. For example: "$4.00 ROAS (400% return)". Being crystal clear in your chosen measurement will save countless headaches down the line and ensure your success isn't lost in translation. Pick a primary reporting method that aligns with your key stakeholder's mindset and stick to it!