POAS (profit on ad spend)
POAS is gross profit generated per unit of ad spend — the same arithmetic as ROAS with margin instead of revenue in the numerator. It re-ranks campaigns by what they contribute, not what they turn over.
Revenue-based ROAS treats a 70%-margin sale and a 15%-margin sale as equals, so Smart Bidding optimizing on revenue systematically over-buys the worst economics. POAS fixes the input: send margin-reflecting conversion values and the algorithm starts chasing baskets that actually make money.
You do not need perfect unit economics to start — even margin bands (high, mid, low) applied to the catalog re-rank campaigns more truthfully than exact revenue values. The first time an account is ranked by POAS, at least one flagship campaign usually drops from hero to passenger.
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