If you’re a great advertiser, you know how invaluable statistics are. The numbers help you determine how well your ads are doing and suggest where you could improve upon. And one of the most looked at statistics is ROAS.

But there’s a very similar statistic called POAS that is often overlooked. So what’s the difference between them? Stay tuned to find out.

What is ROAS?

Return on ad spend, or better known as ROAS, is a metric that shows how well your ad performed. It shows how much money you made from your ad spend.

For example, let’s say you spent $50 on Facebook ads, and the ROAS is 250%. That means your ad just made $125 (50 x 2.5 = $125). Seems like a good investment, right?

Well, there’s a slight problem with it. While it might show that your ad is making money, it doesn’t show you the whole picture. The $75 difference isn’t your profit as it didn’t consider the product cost and shipping.

So you might think you’re getting a great return with ad spend, but in truth, you’re actually losing!

What is POAS?

That’s where POAS comes in. POAS is short for profit on ad spend, and it does what it says. Instead of showing you how much revenue you got from a single dollar, you’ll know how much profit you got from your ad.

That will show you your actual profit, which is why many people are switching from ROAS bidding campaigns to POAS ones. That’s because when the POAS is 150%, you know you’re profitable.

Conclusion

And that’s the difference between POAS and ROAS. So whenever you’re making ads, be sure to use POAS to judge if you were profitable. And if you’re looking to track your poas bidding campaigns, you need to give Kuvio a try. With this service, you can easily get your desired statistics.