Profit on Ad Spend (POAS)

Overview

Profit on Ad Spend (POAS) is a metric that measures the profitability of your advertising efforts.

πŸ“˜

POAS = Total Sales / Total Ad Spend

The calculation is based on data from the Blended Stats table.

Insights and Actions

Profit on Ad Spend (POAS) is vital for understanding the direct profitability generated from advertising investments. Efficiently leveraging POAS data can guide strategic business decisions:

  • Optimize Advertising Strategy: Assess which advertising channels and campaigns provide the highest POAS, and allocate more budget towards these high-performing areas.
  • Adjust Pricing and Cost Management: If POAS is lower than desired, consider strategies for reducing costs or adjusting pricing to improve profit margins without sacrificing sales volume.
  • Product and Audience Refinement: Use POAS insights to identify which products or services and customer segments are most profitable, focusing your marketing efforts to enhance profitability.
  • Marketing Mix Evaluation: Reevaluate your overall marketing mix and promotional strategies based on POAS outcomes to ensure a balanced and profitable advertising approach across all platforms.

Example Use

Prompt

What's my POAS for yesterday?

Response

Query

SELECT
  COALESCE(SUM(total_sales) / NULLIF(SUM(spend), 0), 0) AS POAS
FROM
  prepared_blended_stats_table
WHERE
  event_date = CURRENT_DATE() - 1;