E-commerce

Profit on ad spend (POAS)

The gross profit from ad-driven sales divided by ad spend.

What it is

POAS replaces revenue with profit, so a sale of a high-margin product counts for more than a discounted one of the same price.

Why it matters

For e-commerce

It steers budget toward the products and campaigns that make money, which ROAS cannot do when margins differ.

How it is measured

FormulaPOAS = gross profit from ad sales / ad spend

Send profit (or margin) as the conversion value instead of revenue, or calculate it afterwards from order data.

A common mistake

Sending profit values without keeping them current, so price or cost changes quietly mislead the bidding.

All terms

See the work on your own account.

A 30-minute call. We look at your market, your buyers and where the loop would start.

Book a call