AOV
Total revenue divided by number of orders: the average a customer spends per purchase.
AOV, average order value, is your total revenue divided by your number of orders: the average a customer spends per purchase. It is one of the most useful numbers in an ad account because it sets how much you can afford to pay to win a sale.
A higher AOV means more margin per order, which means you can bid higher and still clear your break-even, so raising AOV through bundles, free-shipping thresholds or merchandising often does more for profitable scale than chasing a lower cost per click. AOV also feeds the break-even math directly: your break-even cost per order is AOV times your gross margin. It is the lever most brands underuse: a lift in AOV through bundles or free-shipping thresholds widens the margin on every order and the budget you can profitably spend, often with less effort than shaving another point off your cost per click.
See how AOV sets your targets in the break-even ROAS calculator, and the full benchmark picture in what is a good ROAS for ecommerce.
Put the number to work: the break-even ROAS calculator turns your margins into the ROAS you need, and a free Due Diligence Audit checks whether the figures you see are the ones you are getting. Back to the glossary.