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.
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