Improve your profitability throughmargin-optimized ads.

Tromml's Margin-Based Ad Optimization equips eCommerce sellers with the tools to improve the profitability online advertising

By focusing on the margins rather than just sales volume, our platform ensures that your advertising budget is invested in the most profitable products.

Direct Link to Net Profit
Resource Allocation Efficiency
Alignment with Financial KPIs
Refined Marketing Strategy
Alignment with Long-term Strategic Goals

Upgrade from ROAS

Are you maximizing your e-commerce ad spend?

Traditional ROAS, or Revenue on Ad Spend,  measures revenue, not actual profit, often skewing your marketing investments towards high-revenue but low-profit products.

POAS, or Profit on Ad Spend, aligns your ad dollars directly with actual profits, offering a clearer and more effective metric for profitability.

Learn More about ROAS v POAS

Frequently asked questions

What is POAS advertising?

POAS stands for Profitability on Ad Spend. It is a margin-optimized advertising approach where spending is directly tied to the profitability of the ads rather than just the revenue generated. This method ensures that your advertising efforts are not just bringing in revenue, but are also profitable.

How does POAS differ from traditional ROAS?

While Revenue on Ad Spend (ROAS) focuses on the revenue generated per dollar spent on advertising, POAS emphasizes the actual profit generated. This approach considers the cost of goods sold (COGS) and other expenses, which allows for more precise and profitable marketing decisions.

Who can benefit from POAS advertising?

Businesses with diverse product lines or those with variable margins across different products (due to cost of goods and/or shipping) benefit the most from POAS advertising. It is particularly useful for companies looking to maximize their advertising efficiency and ensure that their marketing budget is contributing directly to their bottom line.

How do you calculate POAS?

POAS is calculated by adjusting the ad spend based on the profit margins of the products sold through advertising. This involves tracking not just the sales generated from ads, but also the cost associated with those sales, including production and logistical costs.

What if I don’t calculate my margins regularly?

No problem! Tromml’s platform is designed to give profit assessments that can feed into these types of ad campaigns. This margin data will be constantly updated as you receive more sales so you’re always pushing up-to-date information.

Do I have to change all of my campaigns to POAS?

No, you don't have to change all of your campaigns to POAS. You can start by applying POAS to a portion of your campaigns to compare performance against traditional ROAS campaigns. This can help you make an informed decision about whether to expand POAS to more or all of your campaigns.

How long does it take to see results from POAS advertising?

The time it takes to see results from POAS advertising can vary depending on several factors, including the scale of your campaigns, existing campaign history, ad platform learning, market conditions, and the accuracy of your cost and profit data. However, many businesses start to see actionable insights and improved profitability within a few weeks of implementing POAS strategies.

We use an ad agency to manage our campaigns. Will we have to change agencies?

Not necessarily. We can work with your existing ad agency to integrate POAS into your current campaigns. Our platform is designed to complement the work of ad agencies by providing them with enhanced data that can improve campaign performance.

What type of campaigns does this work for?

POAS advertising can be applied to any type of campaign where profitability is a key performance indicator. This includes search, display, social media, video, and shopping campaigns. It is particularly effective for campaigns with specific profitability goals or where there is a significant variation in margins across different products. It works particularly well with Google Analytics reporting and Google Shopping campaigns.

What kind of data integration is required for POAS advertising?

To effectively implement POAS advertising, data integration involving sales revenue, COGS, and other expenses is necessary. Our platform can integrate with your existing e-commerce platform, accounting software, and ad platforms to pull in the required data for accurate profit tracking.

Does Tromml set up ads and campaigns for clients?

No, Tromml does not set up ads and campaigns. Our service is focused on providing the data necessary for optimizing profitability. We leave the actual creation and management of ads and campaigns to ad agencies and marketing managers who can use our data to enhance their strategies.

How does Tromml's data integrate with existing campaign strategies?

Tromml's data integrates seamlessly with existing campaign strategies by providing a layer of profitability analysis. This allows marketers to adjust their strategies based on which products or services are most profitable, rather than just those that generate the most revenue.

Will Tromml's service require changes to our current marketing processes?

Tromml's service is designed to enhance, not disrupt, your current marketing processes. The data we provide can be easily incorporated into your existing workflows, allowing you to make more informed decisions without significant changes to how you operate.

Can Tromml's profitability data be used for real-time campaign adjustments?

Yes, Tromml's profitability data can be used for real-time campaign adjustments. By continuously updating the data, we enable marketers to make on-the-fly decisions to optimize campaigns for the highest profitability.

How does Tromml's data integrate with existing campaign strategies?

Tromml works collaboratively with ad agencies by providing them with detailed profitability data. We can communicate with your agency to ensure they understand how to leverage this data within their existing campaign management tools and strategies.

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