GLOSSARY

AOV (Average Order Value)

What is AOV?

DefinitionAOV is the average revenue generated per order, calculated as total revenue divided by number of orders. It anchors how much CAC a brand can profitably afford.
FormulaAOV = Total revenue ÷ Number of orders

AOV varies enormously across health: a supplement order runs $25–$99, a med spa visit $450–$700, and an IVF cycle $10,000–$20,000, which is why a four-figure CAC can be rational for fertility but fatal for supplements. The decision rule is AOV × gross margin versus CAC: a $60 supplement order at 60% margin leaves $36 of first-order profit against the $40–110 blended CAC range across AdBoost Health partner accounts, so the first order rarely pays for itself and the model must be underwritten by rebills. Raising AOV with bundles and 90-day supplies is often the cheapest CAC “cut” available, since it lifts the affordability ceiling without touching media buying.

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