POAS

POAS (Profit on Ad Spend) measures the ratio between realized gross profit and ad spend, correcting ROAS for the cost price of goods and other variable costs. The metric gives a more accurate picture of whether advertising actually generates profit. Two products with the same ROAS can have very different POAS if their margins differ.

An online store selling both high-margin and low-margin products uses POAS to shift budget toward the campaigns that deliver the most bottom-line profit rather than the most revenue.