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Profit on Ad Spend

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Use Profit on Ad Spend to measure profitability, not just revenue.

Understand how POAS works, how Channable calculates it, and where you can use it.

Start using Profit on Ad Spend

Set up Profit on Ad Spend

Mark one or more project fields as POAS cost fields and start using the metrics.

Use POAS metrics in rules

Apply profit-based Insights metrics in rules to label and optimize products automatically.

Read the POAS FAQ

Get answers about cost fields, segmentation, dashboard data, and common POAS questions.

Learn more about Profit on Ad Spend

What Profit on Ad Spend means

Revenue on Ad Spend, or ROAS, focuses only on revenue generated by ads.

Profit on Ad Spend, or POAS, goes further. It shows how much actual profit your advertising generates.

Unlike ROAS, Profit on Ad Spend also considers associated costs such as product costs, shipping, payment fees, and other expenses. This gives you a clearer view of ad effectiveness.

Compare ROAS, profit, and POAS

These simplified formulas show the difference:

  • Revenue on Ad Spend (ROAS) = (Revenue / Ad Cost) × 100%

  • Profit = Revenue — All Costs

  • Profit on Ad Spend (POAS) = (Profit / Ad Cost) × 100%

Calculating fully accurate profit is difficult because most teams do not have access to every cost at product or order level.

Even a simplified profit calculation, such as using buying price only, gives you more transparency than revenue alone.

How Profit on Ad Spend works in Channable

You can use Gross profit, Net profit, and Profit on Ad Spend at product level in Channable.

You can select one or more cost fields to include in the calculation.

Formulas we use

  • Gross profit = Conversion value — (POAS Cost field 1 + POAS Cost field 2 + …) * Conversions

  • Net profit = Gross profit — Ad Cost

  • Profit on Ad Spend = Gross profit / Ad Cost * 100%

Availability

Currently, Profit on Ad Spend metrics are only available on Google Ads Insights dashboards.

If you want Profit on Ad Spend for other channels, contact our support team to share your interest.

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