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The Madison Avenue Field GuideA field guide to marketing & advertising, by Brandon Mina

GlossaryMeasurement & AttributionProfit on Ad Spend (POAS)

Measurement & Attribution

Profit on Ad Spend (POAS)

Gross profit generated by advertising divided by ad spend, a margin-aware alternative to ROAS.

By Brandon MinaCEO, BrandPilot AIUpdated November 2026

Short answer

Profit on ad spend (POAS) is the gross profit generated by advertising divided by ad spend. Unlike ROAS, which uses revenue, POAS accounts for product margins, so a campaign selling low-margin items is not mistaken for a strong performer. Advertisers can feed profit values to bidding systems to optimize toward profitable sales.