Marketing
POAS
Profit on ad spend: contribution margin per euro advertised.
Formula
Contribution margin ÷ ad spend
POAS replaces revenue with contribution margin. Instead of asking how much the ad sold, it asks how much you kept from what it sold.
It matters most when the catalogue is mixed. Two products with identical revenue can carry very different margins, and a campaign pushing the thin one looks excellent on ROAS while losing money.
A POAS above 1 means the advertising paid for itself out of contribution margin. What it needs to be depends on the overhead it also has to cover.