ROAS = Revenue / Ad Spend. POAS = Gross Profit / Ad Spend. A campaign with 4x ROAS can still lose money if margins are thin. POAS shows which campaigns actually generate profit.
Losing $200 per $1,000 spent
Making $500 per $1,000 spent
Summer Sale looks great at 4.2x ROAS — but after COGS, it's losing money at 0.8x POAS.
Every $1 of ad spend returns less than $1 of profit. Stop this campaign.
You're covering ad spend but thin margins. Only run for brand awareness or customer acquisition.
Solid profitability. This is the target range for most growth campaigns.
Exceptional profitability. Scale aggressively but watch for margin compression.
If your goal is reach, impressions, or building brand recall — ROAS tells you revenue per ad dollar. Profit doesn't matter yet.
When you're testing a new product or audience, ROAS helps you find winners before you optimize for profit.
Performance campaigns, retargeting, seasonal scaling — if profit is the goal (and it should be), POAS is the only metric that tells the truth.
Comparing Meta vs Google vs TikTok? POAS shows which channel is actually most profitable, not just highest revenue generator.
NetNet is the only Shopify profit app that calculates POAS. It divides gross profit by ad spend for each platform (Meta, Google, TikTok) and shows blended POAS across all channels.
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