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Money and efficiency

AOV

Average Order Value

Average revenue per order. Sets how much a conversion can afford to cost.

By AutoPPC Inc.

AOV × target ACOS gives your target cost per acquisition. A $30 product at a 30% target can afford $9 of ad spend per order. A $200 product at 25% can afford $50.

This is why fixed spend thresholds are wrong. "Pause anything over $20 with no sales" is far too aggressive for the $200 product and far too patient for the $30 one.