ROAS is a great metric to analyze, but it has a flaw. It doesn’t actually show you if you were profitable. That’s because it doesn’t take into account other expenses, like shipping and product costs. So, many companies have started to go from ROAS bidding to POAS bidding.
But how can you do the same? Stay tuned to find out.
Step #1 – Gather Necessary Information
First, if you want to go from ROAS to POAS, you need to gather all the essential information. That means you’ll have to find your product’s actual cost, shipping costs, and so on. Also, makes sure you’ve calculated your profit margins!
Step #2 – Add Your Data to Google
Now that you’ve gathered all the necessary information to calculate POAS, you must add them to your Google ads account. You can do it by going to your Google Analytics page. There you should be able to create a goal.
When you’re creating one, make sure to add your profit margins.
Step #3 – Run Your Ads With POAS bidding strategy
Congratulations! You’re all set up to start ad campaigns with your POAS bidding strategy. So start using it.
The process is similar to your usual ads. The only difference is instead of setting ROAS bidding to 300%, you should set your POAS bidding between 120% to 150%.
And this is how you switch from ROAS to POAS. If you’re looking to make your switch to poas bidding quicker and easier, then you need to try out Kuvio.