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The Madison Avenue Field GuideA field guide to marketing & advertising, by Brandon Mina

GlossaryMeasurement & AttributionAverage Order Value (AOV)

Measurement & Attribution

Average Order Value (AOV)

Total revenue divided by the number of orders over a period.

By Brandon MinaCEO, BrandPilot AIUpdated November 2026

Short answer

Average order value (AOV) is total revenue divided by the number of orders over a given period. It measures how much customers spend per transaction. Retailers raise AOV through bundles, upsells, cross-sells, and free-shipping thresholds, and track it alongside conversion rate because together they determine revenue per visitor and acquisition affordability.