POAS
The letters POAS stand for Profit On Ad Spend. This is a metric to calculate the actual profitability of an ad campaign. By calculating with the POAS, you divide the profit by the advertising costs. This involves the following formula: POAS = (Conversion Value - Purchasing & Selling Costs)/ Cost.
The POAS calculation is very similar to the ROAS formula. The difference between POAS and ROAS is that in the latter the focus is entirely on revenue and not on the profitability of the campaign. When the POAS formula is applied, profit is divided by advertising costs and not revenue. This allows advertising costs to be handled more efficiently.
