POAS

POAS, profit on ad spend, is contribution margin divided by advertising spend. Where ROAS asks how much revenue the ads sold, POAS asks how much you actually kept from what they sold, which makes it the ratio that survives a mixed catalogue with very different margins.

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, which is a number your own statement has and no benchmark does.

Compute it blended, on your own margin data, rather than from a platform's claimed conversions; the MER and POAS calculator does exactly that from the cost shares you give it, across every platform you spend on at once.