POAS
POAS (profit on ad spend) is profit divided by ad spend. It replaces revenue in ROAS with profit, so a result above 1 means the ads paid for themselves and left profit. Teams use different profit definitions, so state which one you use.
Formula
POAS = Profit before ad spend ÷ Ad spend
Example
Profit before ads: $10,000 − $4,000 COGS − $800 shipping − $700 returns = $4,500. POAS = $4,500 ÷ $2,500 = 1.8.
In Analify
Analify has the inputs for POAS — product costs, shipping, returns and ad spend — so you can ask the Analify Agent for profit before ads relative to spend by campaign or channel.
Questions
What POAS do I need?
Above 1.0 the ads covered themselves from the profit they generated. Your target depends on fixed costs and growth goals.
POAS vs ROAS?
ROAS ignores costs. Two campaigns with the same ROAS can have very different POAS if they sell products with different margins.
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