The numbers, in plain English
Every term with a definition, the formula behind it, and a worked example with real numbers — so you can look one up and get back to the decision you were making.
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Grouped by where the number sits in your model.
Revenue
- Average order value (AOV)Average order value is your total revenue divided by the number of orders that produced it, over the same period. It answers one question: what is a typical order worth?AOV = revenue ÷ orders
- Return on ad spend (ROAS)Return on ad spend is the revenue attributed to advertising divided by the amount spent to earn it, over a chosen period and channel. It is expressed as a multiple: a 4× ROAS means €1 of spend produced €4 of revenue.ROAS = ad revenue ÷ ad spend