GLOSSARY
POAS (Profit on Ad Spend)
What is POAS?
DefinitionPOAS is gross profit generated per dollar of ad spend, unlike ROAS which uses revenue. Two campaigns with identical ROAS can have very different POAS depending on margin.
Formula
POAS = Gross profit from ads ÷ Ad spendFor supplement and health brands with wide margin differences across SKUs, optimizing to ROAS can scale low-margin products at a loss; POAS keeps spend pointed at what’s actually profitable. Two campaigns each returning 3× ROAS can sit on opposite sides of the line: a 70%-margin peptide SKU delivers 2.1× POAS while a 30%-margin supplement bundle delivers 0.9× and loses money on every order. Treat POAS above 1.0 as the floor for scaling a campaign; below it, ad spend is buying revenue that costs more than it earns. Run your own with the POAS calculator.
Related terms
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