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A guide to the advertising and e-commerce metrics we use, with a worked example.

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Key terms

Net sales revenue
Revenue after discounts and returns, excluding VAT.
Contribution before advertising
Net sales revenue minus product costs and variable selling costs such as commission, payment processing, shipping and returns.
ROAS
Net sales revenue divided by ad spend.
POAS
In our reports, contribution before advertising divided by ad spend.
Contribution after advertising
Contribution before advertising minus ad spend.

Worked example

TRY 100,000 in net sales minus TRY 76,000 in variable costs leaves TRY 24,000 before advertising. With TRY 25,000 in ad spend, ROAS is 4.00, POAS is 0.96 and contribution after advertising is −TRY 1,000.

Updated .