Average order value sets how much you can afford to pay for a customer.
How to calculate AOV
AOV = revenue ÷ orders
$45,000 from 500 orders is a $90 AOV.
Why it matters for ads
ROAS = AOV ÷ cost per purchase. So a $90 order at a $30 cost per purchase is a 3.0x ROAS. Raise AOV with bundles or thresholds and the same ad cost buys more revenue.
In our data, the median brand's cost per purchase on Meta was 46% of its AOV.
More: Facebook ads cost and what is a good ROAS.
