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Why POAS is better than ROAS

You may ask why POAS is better than ROAS? Here is an idea of why we use POAS instead of ROAS, to get better results for our clients.

At our agency, every e-commerce client is set up to use a POAS (Profit on Ad Spend) system from the start. Here’s why we believe POAS is superior to ROAS (Return on Ad Spend):

1. Real-time insights: POAS provides us with live data on your business’s overall health. We can see revenue, gross profit, contribution margin, net profit, blended ROAS and POAS, average order value, and more in real time. This comprehensive view helps us scale your webshop effectively.

2. Profit-focused bidding: With POAS, we base our bidding strategies on profit rather than revenue. This allows us to be more aggressive in our campaigns while ensuring profitability across products with varying margins.

3. Centralized data: POAS offers a centralized platform for both you and us to monitor performance. This means everyone is on the same page regarding your business’s profitability, saving time on consultations.

4. Enhanced Meta ads analysis: We receive live profit data from Meta ads, helping us evaluate the profitability of each ad, ad set, and campaign.

5. Shopping booster update: Our shopping booster tool segments products based on profit margin, order volume, and traffic levels. This allows us to optimize campaigns and test underperforming products for potential profitability.

Going POAS, have helped us to be able to be more aggressive, and scale our clients with an average of 20-30% more.

Once you go POAS, you never go back!

Let me know if you have any questions about how we could use POAS to drive success for your business.

Best regards
Asger Olsson

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