WE OPTIMISE YOUR BOTTOM LINE — NOT YOUR ROAS
Most agencies measure success in revenue. We measure in actual profit. With POAS tracking you know exactly what you earn per ad spend.
YOUR ROAS IS LYING TO YOU
A great-looking ROAS can hide a loss. Here is why.
| Campaign A | Campaign B | |
|---|---|---|
| Revenue | 200,000 DKK | 200,000 DKK |
| Ad spend | 10,000 DKK | 10,000 DKK |
| ROAS | 20 | 20 |
| Cost of goods (COGS) | 100,000 DKK | 190,000 DKK |
| Gross profit | 100,000 DKK | 10,000 DKK |
| POAS | 10 | 1 |
Both campaigns have an identical ROAS of 20. But Campaign A is 10 times more profitable. ROAS cannot tell the difference. POAS can.
PROFIT ON AD SPEND
ROAS (the old way)
Revenue ÷ Ad Spend
Measures how much revenue you generate per ad spend. The problem: revenue is not profit. A ROAS of 5 can hide a loss if your margins are low.
POAS (the new way)
Gross Profit ÷ Ad Spend
Measures what you actually earn per ad spend. POAS > 1 = profit. We send gross profit to Google and Meta instead of revenue, so the algorithms optimise for your bottom line.
WHAT WE DO DIFFERENTLY
Server-Side Tracking
We capture 100% of your orders via server-side tracking. No data lost to iOS restrictions, ad blockers or cookie consent. GDPR-compliant.
Profit Data to the Platforms
We send gross profit — not revenue — to Google Ads and Meta. Their Smart Bidding algorithms then optimise for your actual profit.
Returns Accounted For
ROAS counts a returned order as a success. We deduct returns and refunds so the algorithm learns to avoid unprofitable segments.
Technical flow
Order completed in your webshop
↓
Backend calculates: Sale price − COGS − Shipping − Fees
↓
Server-side event with gross profit as value
↓
Google Ads + Meta + GA4 receive profit data
↓
Smart Bidding optimises for profit
POAS BY THE NUMBERS
15% increase in campaign profit
Advertisers using Google's Gross Profit Optimization see an average of 15% more profit compared to pure revenue optimisation.
10% of budget is wasted
An analysis of an e-commerce business with 50M DKK in revenue revealed that 10% of the ad budget was directly unprofitable — invisible with ROAS.
WHO BENEFITS MOST FROM POAS
E-commerce with variable margins
You sell products with widely different margins — from 10% to 60%. ROAS cannot see the difference.
Webshops looking to scale
You want to increase your budget but need to know it actually increases profit — not just revenue.
High return rates
Return rate above 10%? ROAS counts returns as a success. POAS corrects for that.
Frustrated with "great ROAS, thin margins"
Your agency reports ROAS 5, but the bottom line tells a different story. POAS gives you the truth.
OUR APPROACH
Data Audit
We review your tracking setup, e-commerce system and product data. Can we calculate gross profit per order?
COGS Setup
We register cost of goods (COGS) for all products in Shopify, WooCommerce or your platform. Automated wherever possible.
Server-Side Tracking
We implement server-side tracking that sends profit data to Google Ads and Meta. 100% order capture, GDPR-compliant.
Profit Optimisation
Smart Bidding switches to profit as the conversion value. Gradual transition over 4 weeks for stable algorithm performance.
FAQ
ROAS measures revenue per ad spend. POAS measures gross profit per ad spend. ROAS ignores cost of goods, shipping and returns — POAS accounts for all of it. Two campaigns with identical ROAS can have vastly different profitability.
It depends on your platform. Shopify and WooCommerce have good integrations via tools like ProfitMetrics. We handle all the technical setup — you just need cost of goods (COGS) registered per product.
Instead of sending data via the user's browser (client-side), we send data directly from your server. This means iOS restrictions, ad blockers and cookie blocking cannot interfere with your data. Server-side tracking typically captures 15-30% more conversions than browser-based tracking.
Typically 2-4 weeks for setup and testing, then 4 weeks for algorithm stabilisation. You will see the first results within 6-8 weeks of starting.
POAS delivers the most value for e-commerce with variable product margins, high return rates or seasonal sales. For B2B lead generation we use cost-per-qualified-lead instead. We always assess whether POAS is the right approach for your business.
POAS tracking and server-side setup are included in our Google Ads and Facebook Ads management from 6,000 DKK/month. No additional software costs — we handle everything. Book a free strategy call and we will review your current situation.
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READY TO KNOW WHAT YOU ACTUALLY EARN?
Book a free strategy call. We will review your current ROAS and calculate your real POAS.