Profit and POAS

A deal of €1,000 with a margin of 15 % earns less than a deal of €600 with a margin of 60 %. With your margins, the reports show the gross profit of every channel, source and campaign, and the profit on ad spend (POAS): gross profit divided by ad spend. A POAS above 1.0 means the ads pay for themselves.

Set your margins

Open Leads → Settings → Profit.

• Typical margin: the share of a sale that is left after the cost of the product or service, before ad spend. It is used for every deal without a margin of its own. Leave it empty to not track profit.
• Product categories, with WooCommerce: a margin per category. Empty fields use the margin of the parent category, or the typical margin. A product in several categories uses its most specific category, and the lower margin when two are equally specific.
• Cost of goods, with WooCommerce’s cost of goods sold feature turned on: products with a cost get their exact profit; products without one use the margins above.

Report profit to your ads

Under Value sent to ad platforms, choose Gross profit of the deal instead of revenue. Won deals are then reported with their profit, and smart bidding aims for profitable sales instead of large ones.