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Summary
Marketers often use ratios like ROAS (Return on Advertising Spend) and ACOS (Advertising Cost of Sales) to communicate campaign efficiency. Researchers in this study find that the way in which these ratios are framed can dramatically influence stakeholder perceptions and decisions. Published in a working paper of the Marketing Science Institute (MSI), the study reveals that even mathematically equivalent ratios can shape contrasting judgments about marketing effectiveness, investment continuation and strategy preferences. This research underscores the psychological power of presentation and calls for smarter framing in marketing metrics.
