AOV: Average Order Value
The average revenue generated per transaction, calculated as total revenue divided by number of orders.
Formula
Why it matters
AOV is the fastest lever for improving ROAS without touching ad spend. A 20% increase in AOV produces a 20% improvement in ROAS from the same traffic — because each visitor is worth more. It also directly raises LTV without changing acquisition cost.
How to improve AOV
Introduce order minimums for free shipping, bundle complementary products, add upsell or cross-sell at checkout, and test quantity discounts.
Fashion: $80–150. Beauty & CPG: $50–100. Electronics: $200–600. Track as a trend — consistent growth is the signal.
Prooflytics tracks AOV automatically from your connected sources and flags it in your daily briefing when it moves significantly.
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Calculate Average Order Value
AOV
AOV = Revenue ÷ Orders
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Frequently asked questions
Why does AOV matter for paid advertising?
AOV directly affects your ROAS. If you spend $10 to acquire a customer who orders $40 (AOV $40), your ROAS is 4×. If AOV rises to $60, the same $10 acquisition spend now produces a 6× ROAS — with no change to targeting or bids. Higher AOV gives you more room to acquire customers profitably.
What is the fastest way to increase AOV?
The highest-impact tactics in order: (1) Free shipping threshold — set it 20–30% above current AOV. (2) Bundle offers — "frequently bought together" at checkout. (3) Post-purchase upsell (one-click add-on after the first order is placed). (4) Minimum order discount ("spend $75, save $10").
How does AOV differ from LTV?
AOV measures revenue per order. LTV measures total revenue over the full customer relationship. LTV = AOV × Purchase Frequency × Customer Lifespan. Improving AOV raises LTV directly, since each purchase is worth more.