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HOW TO USE POAS IN META WITH PROFITMETRICS

This article explains how ProfitMetrics works with Meta, how POAS bidding is enabled, and how to use the available custom events effectively.

ProfitMetrics enables advertisers to move beyond revenue-based optimisation in Meta and instead optimise campaigns based on profit using POAS (Profit on Ad Spend). This is achieved through a server-side Meta integration and a set of custom events designed specifically for profit-driven decision-making.

Part 1: How ProfitMetrics Sends Data to Meta
Part 2: ProfitMetrics Custom Events for Meta
Part 3: How to Use POAS in Meta with ProfitMetrics
Part 4: Using Custom Events in Parallel
Part 5: Why ProfitMetrics POAS Is Different from Standard Meta Tracking
Part 6: Best Practice: Test and Scale Based on Results
Part 7: Example: ROAS vs POAS in Practice
Part 8: Practical Bidding Scenarios Using ProfitMetrics Custom Events
Part 9: Final Recommendation


Part 1: How ProfitMetrics Sends Data to Meta

ProfitMetrics uses a server-side integration to send purchase data to Meta. Meta then applies its own attribution logic to decide which campaigns receive conversion credit.

While Meta controls attribution and modeling, ProfitMetrics ensures that the correct business data is sent to support accurate optimization.


Meta primarily relies on the following identifiers for attribution:

  • Facebook Click ID (FBC) – present when a user clicks a Meta ad
  • FBP browser ID – available only when consent is granted and browser tracking fires
  • Email address – always sent server-side by ProfitMetrics

If required identifiers are missing due to consent restrictions, ProfitMetrics respects consent and does not send those orders to Meta.

 

Part 2: ProfitMetrics Custom Events for Meta

The ProfitMetrics Meta integration provides 8 server-side custom events. These events allow advertisers to analyze and optimize campaigns not only on revenue, but on profit, customer type, and lifetime value.


Revenue-Based Events

These events are useful when revenue growth remains the primary KPI or when comparing revenue-based performance with profit-based insights.

  • PM Revenue

     Total revenue per purchase (VAT included or excluded based on settings)

  • PM Revenue – New Customers

     Revenue generated by first-time customers

  • PM Revenue – Returning Customers

     Revenue generated by existing customers

  • PM Revenue – New Customers LTV (28 Days)

     Revenue from new customers including their estimated 28-day lifetime value

Profit-Based Events

These events enable true POAS measurement and optimization by accounting for real costs.

  • PM Gross Profit

     Profit per purchase after cost of goods, shipping, and payment fees (VAT excluded)

  • PM Gross Profit – New Customers

     Profit generated by first-time customers

  • PM Gross Profit – Returning Customers

     Profit generated by existing customers

PM Gross Profit – New Customers LTV (28 Days)

  • Profit from new customers including their estimated 28-day lifetime value

 

Part 3: How to Use POAS in Meta with ProfitMetrics

 

Option 1: Use Custom Events for Analysis (Recommended Starting Point)

In this setup, you continue optimizing campaigns using Meta’s standard Purchase event, while using ProfitMetrics custom events for analysis through custom columns.

This allows you to:

  • Keep Meta’s native optimization stable
  • Compare ROAS vs POAS side by side
  • Identify campaigns that drive revenue but are unprofitable
  • Make scaling and pausing decisions based on profit metrics

This is the safest and most common way to introduce POAS without disrupting existing performance.

 

Option 2: Optimize Directly for POAS (Advanced Setup)

For advertisers who want Meta to optimize bids directly toward profitability, ProfitMetrics can send the Purchase event to Meta with profit values instead of revenue.

Before enabling this option, it is critical that:

  • All other Purchase tracking sources (Shopify Meta app, GTM, browser pixel) are disabled
  • Only one Purchase event source remains active to avoid double tracking

Once enabled, you can choose what value is sent with the Purchase event:

  • Revenue value – Meta optimizes for ROAS
  • Gross profit value – Meta optimizes for POAS

This aligns Meta’s bidding logic directly with your business profitability goals.

 

Part 4: Using Custom Events in Parallel

ProfitMetrics custom events can be used alongside the standard Purchase event to build more advanced strategies.

Examples include:

  • Optimizing prospecting campaigns on PM Gross Profit – New Customers
  • Monitoring PM Revenue – New Customers LTV (28 Days) in custom columns
  • Comparing profit contribution from acquisition vs retention campaigns
  • Identifying campaigns that grow revenue but reduce overall profit

This flexibility allows advertisers to understand not just performance, but quality of growth.

 

Part 5: Why ProfitMetrics POAS Is Different from Standard Meta Tracking

 

Standard Meta tracking focuses only on revenue and conversion volume. It does not account for:
  • Product-level margins
  • Cost of goods or operational costs
  • New vs returning customers
  • Early customer lifetime value

ProfitMetrics solves this by:

  • Excluding VAT when required
  • Accounting for real costs to calculate gross profit
  • Separating customer type
  • Assigning 28-day LTV to new customers

This enables more accurate optimization and more sustainable scaling.

 

Part 6: Best Practice: Test and Scale Based on Results

There is no single correct approach for all accounts.

Some businesses scale best using revenue-based optimization, while others benefit significantly from profit-based bidding. The recommended approach is always to:

  • Test both revenue and profit signals
  • Compare ROAS vs POAS outcomes

Scale the strategy that delivers long-term profitability

 

Part 7: Example: ROAS vs POAS in Practice

 

Campaign A (Revenue Optimization)

  • Ad spend: $10,000
  • Revenue: $100,000
  • ROAS: 10x
  • Profit: $30,000

Campaign B (Profit Optimization)

  • Ad spend: $10,000
  • Revenue: $80,000
  • Profit: $60,000
  • POAS: 6x

Although Campaign B generates less revenue, it produces significantly more profit and represents a more sustainable scaling opportunity.

If you need help configuring POAS in Meta, creating custom columns, or deciding which events to use for your campaigns, the ProfitMetrics support team can assist with setup and best practices.

 

Part 8: Practical Bidding Scenarios Using ProfitMetrics Custom Events

 

Below are common, proven scenarios showing how each ProfitMetrics custom event can be used across the funnel. These are guidelines, not rules, and should always be validated through testing.


Top of Funnel (TOF) – New Customer Acquisition

Goal: Acquire new customers efficiently while controlling profitability.

Recommended events:

  • PM Gross Profit – New Customers
     Best choice when margins vary by product and profitability matters more than volume.

  • PM Revenue – New Customers
     Suitable when the priority is market expansion or customer growth rather than immediate profit.

Why this works:

Meta is trained to find users similar to past converters. By optimizing on new-customer-only events, you prevent the algorithm from favoring repeat buyers and ensure spend is directed toward acquisition.

Best practice:

  • Exclude existing customer lists at the campaign level.
  • Use broad audiences to allow Meta to scale efficiently.
  • Start with value-based optimization when using profit events.

Mid Funnel (MOF) – Warm Audiences & Consideration

Goal: Convert high-intent users who have engaged but not yet purchased.

Recommended events:

  • PM Gross Profit
     Captures profit across both new and returning customers.

  • PM Revenue
     Works well when offers, bundles, or promotions are driving conversion volume.

Typical audiences:

  • Website visitors
  • Add-to-cart users
  • Product viewers
  • Video engagers

Why this works:

At this stage, intent is already present. Using profit or revenue signals helps Meta prioritize users likely to convert while maintaining efficiency.

Bottom of Funnel (BOF) – Returning Customers & Retention

Goal: Maximize value from existing customers without overspending.

Recommended events:

  • PM Gross Profit – Returning Customers
  • PM Revenue – Returning Customers

Why this works:

Returning customers usually convert at lower CPAs but can reduce overall POAS if not controlled. These events allow you to measure and optimize the true value of retention campaigns.

Best practice:

  • Exclude very recent purchasers (e.g., last 7–14 days).
  • Use dynamic product ads (DPAs) where applicable.
  • Monitor frequency closely to avoid fatigue.


LTV-Focused Campaigns – Long-Term Growth

Goal: Acquire customers who may not be immediately profitable but generate strong lifetime value.

Recommended events:

  • PM Gross Profit – New Customers LTV (28 Days)
  • PM Revenue – New Customers LTV (28 Days)

Why this works:

Meta optimizes beyond the first purchase and accounts for expected repeat behavior within the first 28 days. This is especially powerful for subscription products or repeat-purchase businesses.

When to use:

  • Subscription models
  • Consumables
  • Brands with strong repeat purchase behavior

 

Hybrid Strategy (Recommended for Most Accounts)

Many accounts perform best using a hybrid approach:

  • Standard Purchase event for core Meta optimization
  • ProfitMetrics custom events for:
    • POAS analysis
    • Campaign-level profit insights
    • Strategic scaling decisions

This allows stability while still benefiting from profit-based intelligence.

 

Part: 9: Final Recommendation

There is no universal “best” event to bid on. The correct choice depends on:

  • Business model
  • Margin structure
  • Customer lifecycle
  • Growth stage

The most effective strategy is to test multiple events, compare ROAS vs POAS outcomes, and scale the approach that delivers sustainable, profitable growth.

ProfitMetrics gives you the tools to make those decisions with clarity.