POAS Agency
A POAS agency for ecommerce brands that get paid in profit, not revenue.
We optimise for POAS, not ROAS.
JudeLuxe is a UK Google Ads agency that bids on contribution margin at SKU level. Every budget, bid and pause decision is made against Profit on Ad Spend, using your real cost of goods, fulfilment cost and return rate. We work with £3M to £100M ecommerce brands spending from £15k/month on Google and Microsoft Ads.
Trusted by leading brands
What a POAS agency actually does
POAS (Profit on Ad Spend) measures the contribution margin produced per pound of ad spend. ROAS measures gross revenue. The two diverge the moment product margins vary across your catalogue, which is every catalogue.
POAS = (Revenue − COGS − Shipping − Returns − Payment fees − Discounts) ÷ Ad spend
A POAS agency rebuilds the account so that number, not blended ROAS, drives the machine: margin data in the product feed, profit values in the conversion layer, and bid targets set per SKU role rather than per campaign average.
ROAS agency vs POAS agency
Typical ROAS-led agency
- Reports blended account ROAS
- Scales whatever campaign shows the highest revenue multiple
- Treats every SKU as interchangeable
- Percentage-of-spend fee, rewarded for spending more
- Discount-driven revenue counted as a win
JudeLuxe — POAS-led
- Reports contribution margin after ad spend
- Scales only where POAS holds at higher volume
- Assigns every SKU a commercial job under BOI®
- Fixed monthly fee, independent of media spend
- Discounted revenue treated as margin erosion, not growth
How we implement POAS
1. Margin ingestion
SKU-level cost of goods, shipping cost, payment fees and return rate are pulled from your ERP or store and mapped to the Merchant Centre feed as custom labels.
2. Profit values in the conversion layer
Conversion values are sent as contribution margin rather than order value, so smart bidding optimises against profit natively instead of being corrected after the fact.
3. SKU jobs under BOI®
Every product is assigned one of five commercial roles — Scale, Profit, Protect, Recovery, Gateway — under our registered BOI® (Bid On Intent) framework. Bid targets follow the role.
4. POAS targets per role, not per account
A Gateway SKU is allowed to run near break-even because it buys a customer. A Profit SKU is not. One blended target hides both.
5. Reporting the CFO recognises
Monthly reporting leads with contribution margin after ad spend, not a revenue multiple. If profit is flat, the report says so.
More detail: how BOI® works, POAS vs MER vs ROAS, POAS targets by category and calculating POAS in Shopify.
POAS agency FAQs
What is a POAS agency?
A POAS agency manages Google Ads against Profit on Ad Spend rather than Return on Ad Spend. Bids, budgets and SKU decisions are calibrated to contribution margin (revenue minus cost of goods, fulfilment, returns, payment fees and discounts) instead of gross revenue. JudeLuxe is a UK POAS agency working with ecommerce brands turning over £3M to £100M.
Why optimise for POAS instead of ROAS?
ROAS reports revenue per pound of ad spend and says nothing about whether that revenue made money. A 5x ROAS on a 20% margin product breaks even at best, while a 3x ROAS on a 60% margin product is genuinely profitable. We optimise for POAS, not ROAS, because POAS is the only number that maps directly onto the P&L.
How is POAS calculated?
POAS = (Revenue − COGS − Shipping − Returns − Payment fees − Discounts) ÷ Ad spend. A 2x POAS means every pound of ad spend produced two pounds of contribution margin. For most ecommerce categories, 1.5x to 2.5x is the sustainable scale band.
Do you need margin data to run POAS bidding?
Yes. We need SKU-level cost of goods, shipping cost and return rate. Most brands already hold this in their ERP, Shopify cost fields or a finance spreadsheet. Where the data is incomplete we start with category-level margin bands and tighten them as the feed improves.
What does a POAS agency cost?
JudeLuxe works on a fixed fee from £2k/month fixed fee, with a minimum media spend of £15k/month. Fees are not a percentage of spend, so there is no incentive to spend more of your budget than the profit maths supports.
Which platforms does POAS bidding apply to?
Google Shopping, Performance Max, Search and Demand Gen, plus Microsoft Ads. Profit data is pushed into the feed and the conversion layer so smart bidding optimises against margin-weighted values rather than raw revenue.
Find out what your Google Ads actually make you.
We will rebuild your last 90 days on a POAS basis and show you which SKUs, campaigns and channels are funding the account and which are quietly draining it.
Book a Profit Audit