POAS

What is POAS? Profit on Ad Spend Explained

Definition

POAS = Gross Profit / Ad Spend. More accurate than ROAS because it uses profit rather than revenue.

Why it matters

ROAS ignores COGS. A 5x ROAS on a 15% margin product loses money. POAS forces profitability into the optimisation signal. Break-even POAS is always 1x, making targets universal across products.

Use our POAS calculator alongside the ROAS tab to compare both views of the same campaign.

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