Profit on Ad Spend (POAS)

POAS (profit on ad spend) is the gross profit generated per dollar of ad spend, calculated after deducting cost of goods sold and other variable costs — not gross revenue. It corrects the blind spot in ROAS: a 4.0 ROAS on a product with a 20% margin is actually a losing campaign once costs are counted. By steering bids and budgets toward profit rather than top-line return, POAS aligns paid media with the actual business outcome and is increasingly fed into smart-bidding via profit-margin data.

Source: profitmetrics.io