A lot of business owners look at Return on Ad Spend (ROAS) to see if their ads are working. ROAS tells you how much money you make in sales for every dollar you spend on ads. That sounds good, but it can trick you.
ROAS only looks at sales (the money that comes in). It ignores all the costs (the money that goes out). So a campaign can have a great ROAS but still lose money once you pay for products, shipping, taxes, and everything else.
That’s where Profit on Ad Spend (POAS) comes in. POAS shows how much real profit you keep after paying all the bills.
How to Calculate POAS
It’s super simple:
POAS = Profit from the ads ÷ Money spent on ads
Example:
- You spend $100 on ads
- Those ads bring in sales that leave you with $300 profit after all costs
- POAS = 300 ÷ 100 = 3 (or 3:1)
- A POAS of 3 means every $1 you spend on ads gives you $3 in profit. That’s the number that actually matters.
Why POAS
- You see which ads really make money (not just sales)
- You stop wasting money on ads that look good but lose cash
- You can put more budget into the products and ads that make the most profit
What is ProfitMetrics.io?
ProfitMetrics.io is a tool made for online stores. Instead of showing only sales like Google or Facebook normally do, it automatically adds up every cost (products, shipping, fees, etc.) and tells you the real profit from each ad, product, and customer group.
Main things it does:
- Connects to Google Ads, Facebook Ads, TikTok Ads, Shopify, etc.
- Updates profit numbers instantly—no waiting or spreadsheets
- Shows exactly which ads, products, or customers make money and which ones lose money
- Helps you raise or lower ad budgets based on profit, not just sales
Real-Life Example
Imagine you sell phone cases:
- Cheap case costs you $5, sells for $20 → $15 profit
- Fancy case costs you $30, sells for $50 → $20 profit
If you only look at sales (ROAS), you might think both are good. But with POAS you see the fancy case actually makes more money per sale, so you tell your ads to show it more.
How Agencies Use It
Advertising agencies can use ProfitMetrics.io for their clients too. Instead of saying “we got you $50,000 in sales,” they can say “we got you $18,000 in real profit.” Clients love seeing the actual money they keep.
Bottom Line
If you run an online store (or help someone who does), stop judging ads only by how much they sell. Start looking at how much profit they actually put in your pocket. Tools like ProfitMetrics.io make that easy and automatic.
Focus on profit, not just sales → spend smarter → make more money. It’s that simple!
