AOV (Average Order Value)

Measured as

AOV = revenue / orders

Misused when

• Using AOV without accounting for refunds/returns (net revenue can be lower).
• Comparing AOV across channels with very different product mixes.

Operator takeaway

• Use AOV with gross margin to estimate contribution per order.
• Track AOV by channel and campaign (intent differs).
• Use AOV (Average Order Value) only inside a stable attribution rule, conversion definition, and time window so campaign comparisons stay honest.
• If performance changes, check whether the metric moved for a real business reason or because the measurement setup changed underneath you.

Next decision

• Quantify the impact with Paid Ads Funnel Calculator if you need to turn the definition into an operating assumption.
• Read Paid ads funnel: CPM, CTR, CVR -> CPC, CPA, ROAS (with profit) if the decision depends on interpretation, policy, or trade-offs beyond the raw formula.