Is your ad spend actually driving profit? You'd be surprised how many sellers don't actually monitor this, because so many ad tools optimize for revenue. We created a new metric to help: Total Profit on Ad Spend (TPOAS). TPOAS measures how effectively your ad spend generates actual PROFIT, not just sales. Put simply, it tells you: for every $1 spent on ads, your business made (or lost) $Y in profit. With TPOAS, by product, you can: -Stop "missing the forest for the trees" and optimize ads for the most important KPI: net profit -Identify over- or under-invested products across ad types -Find products where ad spend boosts repeat purchases and customer value Imagine finding out a high-ROAS ad is actually losing money on every sale. TPOAS changes the game. Unlock your ad profitability. Download our whitepaper for help figuring out TPOAS. https://lnkd.in/eqcTkXaE #AmazonAdvertising #TPOAS #EcommerceMetrics
I implement something similar, POPS (Profit on PPC Sales) POPS kinda catchy though 😀
A new metric?! Be careful what you wish for…
Big fan of this metric already, Andrew Hamada!
finally, a metric that puts profit over revenue in ad spend Andrew Hamada New one, great.
👩🏻💻 Ecommerce 🌈 Equality 🥊 Kickboxing purple/white belt
6moYes, this is a great measure to be aware of and it needs to be reviewed holistically. It depends on your advertising objective. Lower funnel activity on Amazon will appear to drive the best unit profit return in isolation but you could argue you might have sold the product anyway. There's an efficacy ceiling for investment. Upper/mid funnel activity drives less profit per unit but the sales are likely to be more incremental. It comes back to needing to bring shoppers through the funnel which drives the more profitable ad spend at the bottom 😅