The paid media lab POAS vs ROAS: Why and how to track profit in eCommerce (w/ Adriaan Dekker) | S1, EP3
In this episode of The Paid Media Lab podcast, we're speaking to PPC expert Adriaan Dekker about whether it's worth shifting to POAS instead of ROAS.
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, and a trusted guide for thousands of performance marketers working at the cutting-edge of PPC.
We could think of no better way to delve into advanced paid search metrics than to get Adriaan on, and have a chat with him about something he firmly believes in – the value of the Profit on Ad Spend (POAS) metric vs. the more traditional ROAS metric.
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 POASPrefer watching over listening? Subscribe to Lunio's YouTube channel to get full-length video episodes: @lunio_ai
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