Definition
AOV (Average order value)
AOV is the average revenue per order, calculated as total revenue ÷ total orders.
What it means
AOV matters because it sets the ceiling for what you can afford to pay for acquisition at a given ROAS. Increasing AOV often improves profitability faster than squeezing tiny performance gains out of targeting.
Why it matters
- Higher AOV means you can afford higher CAC to scale faster.
- AOV is a lever you control with offers (bundles, upsells).
How to improve it
- Bundle complementary items and promote the bundle in creative.
- Add post-purchase upsells and cross-sells.
- Use tiered offers (good/better/best).
Common mistakes
- Ignoring AOV and trying to fix scaling only with ad tweaks.
- Discounting in a way that reduces margin without improving conversion.
Related terms
Apply this with free tools
Use August Ads tools to generate better hooks and scripts, then test variants: