POAS Bidding — What is it, and Why do You Need it?

In marketing, there are many phrases to learn. There’s lifetime value, click-through rate, and many more. And knowing them is excellent as they can help make your marketing campaigns profitable.

However, one phrase that doesn’t get talked about much is POAS bidding. So in this blog post, we’ll explain what it is and why you need to start using it. If that sounds interesting, then keep on reading.


First, let’s understand what POAS means. To put it simply, POAS is short for profit on ad spend. That means it’s a metric that shows how much profit you make from your ad. From this explanation, you might think it’s the same as ROAS (return on ad spend), but that’s not true.

That’s because ROAS looks only at how many sales you got from your ad spend and nothing else. That means it doesn’t take your product and shipping costs into consideration. And that’s what POAS strives to eliminate!


Now that you understand what POAS bidding is, you might think: “why would you need to use them on your next ad campaign?” Well, that’s because POAS comes with a couple of advantages:

First, it brings clarity! At a glance, you can see if your ad is actually profitable or not.
And secondly, it improves your profitability. Since your bidding strategy will consider other costs, it ensures it stays more profitable.

But how can you start using it? Well, the best tool for poas bidding is Kuvio. With it, you can easily collect all data streams into one and create POAS ad campaigns.


And that’s what POAS bidding is! So as you can see, it’s a metric that actually shows you how profitable your ads are actually. So make sure to add it to your next ad campaign to get clarity and become more profitable.