Revenue is vanity.
Profit is what counts.
A high ROAS doesn't mean you make money. We steer the ads towards what is actually left – the profit after cost of goods, shipping and ads. It is called POAS, and it changes which products and customers get the budget.
Why ROAS fools you
ROAS counts revenue. But revenue isn't money in the bank.
The margin is invisible
A jacket for 2,000 SEK and a beanie for 300 SEK look the same to the ad platform. But you earn completely different amounts on them.
Sales buy revenue
Discounts give nice peaks in the graph. But every krona of discount comes out of the profit – and customers learn to wait.
Returns and shipping
A purchase that is sent back still counts as a win in the ad account. In the checkout it is a loss.
Who wins the budget?
Three products, 10,000 SEK in ads each. Look at them the way the ad account does – and then the way your accounts do.
What looks best in ROAS isn't always what earns the most. That is why we give the platforms profit as the goal, not just price.
- 🧥 Jacket2,000 SEK · 25% marginGets more budget
- 👕 Sweater800 SEK · 55% marginGets more budget
- 🧢 Beanie300 SEK · 70% marginGets more budget
Johannesens: +321% at full price
The fashion house wanted to grow without cutting prices. We built ads connected to the stock, captured buying intent on specific brands and models and split Meta into men's and women's – and steered towards what was actually left.
Read the full case →How we steer towards profit
It sounds technical. It is – but the result is simple: more left over.
Margin per product
We pull cost price and margin from your shop or your stock – per product, not on average.
Profit as the goal
Google and Meta learn what each purchase is worth in profit, not just in price. Then they look for the right buyers.
Groups by margin
Products with high and low margins get different goals and budgets, so they don't fight over the same money.
Sales that pay
Profit is calculated per product before the discount is set. Black Week should leave money in the bank – not just revenue.
Follow up in money
The reports show profit after ads. Do the maths yourselves with our Unit Economics calculator.
Questions about POAS
What is POAS?
POAS stands for Profit On Ad Spend – profit per krona spent on ads. ROAS counts how much you sell for every krona in ads. POAS counts how much is left after the cost of goods. A POAS above 1 means the ads make a profit.
What is the difference between ROAS and POAS?
ROAS uses the price, POAS uses the profit. Two products can have the same ROAS but completely different POAS if the margins differ. That is why steering on ROAS can bring more revenue but less money left over.
What ROAS do we need to make a profit?
It depends on your margin. With a 50% margin you need a ROAS above 2 just to break even. Do the maths on your own numbers with our ROAS calculator.
Does it work on Shopify and WooCommerce?
Yes. We pull the margin from the shop or the product feed and send it to Google and Meta, often via server-side tracking so that cost prices are not visible to visitors.
Should we run Black Week and sales?
Gladly – if it pays. We calculate the profit per product before the discount is set, so you go hard on what leaves money in the bank and skip what only brings revenue.
What is left for you?
We look at your ads, your margin per product and where the budget ends up – and tell you honestly where the profit leaks.
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