How Profit on Ad Spend (POAS) Works
A common version divides contribution profit before ad cost by ad spend, though businesses use different definitions. The exact numerator must be stated.
A Simple Example
If attributed orders produce $120,000 of contribution before advertising on $40,000 of ad spend, POAS is 3.0× under that definition.
Why Profit on Ad Spend (POAS) Matters
POAS incorporates product economics that revenue-based ROAS leaves out.
Common Misreading
There is no universally standardized POAS formula. Different cost inclusions can make two reported values incomparable.