AOV (average order value)
AOV is total revenue divided by number of orders — the starting point of every ecommerce unit-economics calculation.
AOV matters to advertising because it anchors both breakeven ROAS (AOV ÷ contribution margin) and budget math (revenue goal ÷ AOV = orders needed). A 15% AOV improvement lowers the required budget for any revenue goal and loosens every bidding constraint at once, which is why bundling, thresholds for free shipping, and post-purchase upsells are quietly some of the best "advertising" work available.
Watch the distribution, not just the mean: an AOV averaged across a $30 accessories mode and a $400 hero-product mode describes neither. Segment campaigns where order-value modes differ meaningfully.
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