Observed Signal · Apr 9, 2026 · Advisory · Source: https://martechseries.com/feed/ · Impact: 2/5 · Sentiment: Positive
BFJ Digital Urges Shift from ROAS to POAS
BFJ Digital, a performance marketing and data analytics agency, has issued an advisory to the Australian retail sector warning that sole reliance on Return on Ad Spend (ROAS) produces “profitless growth.” The agency recommends transitioning to Profit on Ad Spend (POAS) by 2026, which requires integrating back‑end financial data (COGS, returns, logistics) with front‑end marketing platforms so algorithms optimise for actual profit rather than gross revenue. BFJ Digital outlines benefits including automated margin protection, improved contribution tracking, and feeding profit signals into platforms like Google and Meta to improve AI-driven targeting. The advisory frames the change as essential for retailers to remain competitive and financially sustainable in a high‑cost environment.
Measures and metrics drive optimisation algorithms and media allocation; recommending a shift from ROAS to POAS affects measurement practices, ad optimisation inputs (including platforms like Google and Meta), and retailer profitability, but the advisory comes from an agency rather than a major platform or regulator.
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Key Takeaways & Evidence Grounding
- BFJ Digital published an advisory to the Australian retail sector criticizing reliance on ROAS.
- BFJ Digital recommends shifting measurement from ROAS to POAS (Profit on Ad Spend) for 2026.
- POAS requires integrating a company’s back-end financial data (e.g., COGS, return rates, logistical overhead) with front-end marketing platforms.
- BFJ Digital states benefits of POAS include automated margin protection, true contribution tracking, and feeding profit data into Google and Meta to train AI optimisation models.
- Hardeep Gill, Performance Media Specialist at BFJ Digital, is quoted explaining the difference between ROAS and POAS.
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