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How to Calculate Average Order Value in Google Ads

Learn how to calculate Average Order Value (AOV) with revenue and number of orders. Track your AOV data on your Stripe, Shopify, and Google Analytics accounts

Maximizing your Average Order Value is one of the best ways to improve your sales and marketing strategy. By definition, Average Order Value (AOV) is exactly how it sounds; it’s the average amount spent per order. This gives your business the ability to better understand your pricing and revenue strategies. While the metric seems simple on the surface, it offers valuable insights into areas of future growth and improvement. We'll take you through how to calculate this metric, how to understand it in the context of your industry, and how to apply it to the platforms you're using now.

How to Calculate Average Order Value

You can calculate AOV by dividing total revenue by total number of orders. AOV can be assessed for various time-periods (i.e. day, week, month, year) and, if your sales are tied to certain products or platforms, you can assign a specific AOV for each. 

If you’re confused about how to define total revenue and total number of orders, we’ve included some nifty definitions and examples below:

  • Total revenue is how much you make from selling your products. A simple way to calculate revenue is sales price times number of units sold. It also usually includes discounts and deductions for customer returns.
  • Total number of orders is, well, the sum of all instances where someone purchased from your store.

When choosing what to include in your calculations, remember: consistency is key! That means, if you decide to include XYZ in your AOV for the month, you should include it in the next month’s AOV as well. Having consistent metrics will allow you to better identify the causes of good or bad performance. For instance, if, over the past few months, you’ve started cross-selling related products at check-out and your AOV increased, then you’ll know that action was productive in expanding order size!

How to Calculate Metric in Google Ads

It can be difficult to calculate this metric in Google Ads, but we have a quick and easy solution, Read below to learn more and get started today.

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