Average order value (AOV)

How to Calculate Average Order Value

Calculating AOV is straightforward. You simply divide your total revenue over a specific period by the total number of orders placed during that same timeframe.

The AOV Formula:

Total Revenue / Total Number of Orders = Average Order Value

Example:

If your e-commerce mobile app generated $50,000 in revenue in one month from 1,000 individual orders, your AOV would be:

$50,000 / 1,000 = $50

This means that, on average, a user spends $50 each time they complete a purchase in your app.

Why is AOV Important for Mobile Marketers?

Tracking AOV is essential for evaluating the overall health of your mobile marketing campaigns. Here is why prioritizing AOV is a game-changer:

1. Improves Return on Ad Spend (ROAS): If you are spending $15 to acquire a purchasing user (CAC), an AOV of $20 yields a tight margin. If you increase that AOV to $40, your ROAS drastically improves without spending an extra cent on user acquisition.

2. Guides Budget Allocation: Knowing your AOV helps you determine how much you can afford to spend on acquiring new users. Higher AOVs allow for more aggressive bidding in ad networks.

3. Informs Pricing and Packaging Strategies: AOV data tells you if users prefer buying single low-ticket items or if they respond well to bundles and premium products.

4. Boosts Customer Lifetime Value (LTV): AOV is a core component of LTV. Users who consistently place high-value orders become your most profitable cohort over time.

How Affise MMP Helps Track and Optimize AOV

As a Mobile Measurement Partner, Affise MMP gives marketers the granular data needed to connect AOV directly to specific advertising channels, campaigns, and creatives.

Instead of just looking at your global AOV, Affise MMP allows you to drill down into the performance of your marketing stack:

• Precise Attribution: Discover which ad networks, influencers, or social campaigns are driving users with the highest AOV, not just the highest install volume.

• In-App Event Tracking: Track granular in-app events like “Add to Cart,” “Checkout Initiated,” and “Purchase Complete” to map the exact user journey.

• Cohort Analysis: Group users by acquisition date and source to see how AOV fluctuates over time for specific audience segments.

• Revenue & Cost Aggregation: View your ad spend side-by-side with the revenue generated by specific cohorts to instantly calculate ROI and profitability.

4 Strategies to Increase Your App’s AOV

If your goal is to push your AOV higher, implementing these proven in-app strategies can encourage users to add more to their carts before checking out:

1. Cross-Selling and Upselling

Use in-app real estate to recommend complementary products. If a user adds a smartphone to their cart, prompt them with a heavily discounted phone case or screen protector just before checkout.

2. Implement Free Shipping Thresholds

One of the most effective ways to boost AOV is to offer free shipping when a user hits a specific spending amount. If your current AOV is $40, setting a free shipping threshold at $50 encourages users to add a small item to their cart to avoid paying a shipping fee.

3. Create Product Bundles

Package related items together at a slightly discounted rate compared to buying them individually. For example, a “Starter Kit” bundle looks like a great deal to the consumer while simultaneously raising their total checkout price.

4. Loyalty Programs and Volume Discounts

Reward users for spending more. Offer “Buy 2, Get 1 Free” promotions or implement a tiered loyalty system where higher spending unlocks better in-app perks or future discounts.