S1, EP3

POAS vs ROAS: Why and how to track profit in eCommerce (w/ Adriaan Dekker)

Posted on:

Jan 22, 2025

Google Ads expert Adriaan Dekker gives key tips and insights on the advantages of using POAS vs. ROAS.

Modern Facebook ICon
Modern Twitter Icon
Modern Linkedin Icon

Ben Harris

Content Writer

Timestamps: 

0:00 - Intro

3:25 - POAS vs ROAS explained

5:02 - POAS for different businesses: which types of businesses can benefit most from POAS

6:28 - B2B Webshop Trends: Adriaan notes the growing trend of B2B companies using webshops.

6:02 - Accurately calculating profit margins

7:20 - Essential prep/considerations before transitioning to POAS

8:38 - POAS and budget allocation: how to shift budget allocation to more profitable products

9:47 - Impact of POAS on automated bidding strategies

11:20 - Google Ads gross profit optimization: Getting POAS from third party tools vs. Google

13:20 - How/when other platforms may follow Google's lead and adopt POAS

14:58 - Using profit metrics for POAS & offline conversion tracking

16:16 - Additional resources Adriaan recommends for getting started with POAS

On the Paid Media Lab podcast, Google Ads expert Adriaan Decker gave key tips and insights on the advantages of using the Profit on Ad Spend (POAS) metric for paid search campaigns.

Adriaan is a highly respected voice within the PPC community, known for documenting every minor and major update to the Google Ads platform since launching his Google Ads newsletter in November 2022. With a substantial 100k following on LinkedIn, Adriaan is a recognized authority in the field. He also has a paid newsletter that offers even deeper insights, along with templates and files, that keeps a significant number of performance marketers at the cutting-edge of PPC.

We could think of no better way to delve into advanced paid search metrics than to get Adrien on, and have a chat with him about something he firmly believes in – the Profit on Ad Spend (POAS) metric. Adriaan has consistently championed the metric, arguing that POAS is superior to the traditional Return on Ad Spend (ROAS). 

Adriaan advocates for POAS, particularly for web shops, as it allows businesses to bid based on profit for each product. He emphasizes that businesses need to accurately calculate their profit margins and understand costs like shipping. With the recent update from Google Ads to allow advertisers to optimize directly for POAS, Adriaan's insights are incredibly timely and relevant. Adriaan’s expertise in this area makes him the ideal guest to discuss how POAS can significantly increase tangible business growth.

Stay in the loop

Boost your paid media results.
Subscribe for expert insights delivered to your inbox.