Where is it used?

AOV is primarily used to measure the financial effectiveness of influencer marketing campaigns in driving revenue. By tracking this metric, marketers can gain valuable insights into the purchasing behavior of customers who were influenced by a particular influencer's content or promotion.

 When to use it?

AOV should be analyzed when evaluating the overall financial impact and return on investment of influencer marketing efforts. It is particularly useful in understanding whether influencers are not only driving sales but also encouraging their audience to make more valuable purchases.

How to use it?

To calculate AOV, brands need to accurately track the sales that originate from specific influencers, typically through the use of unique affiliate links or discount codes provided to each influencer. The total revenue from these tracked sales is then divided by the total number of orders associated with those influencers.

Why do we need it?

Understanding the Average Order Value helps brands to assess the quality of the traffic and the purchasing power of the audience that is being influenced by their influencer partners. A higher AOV suggests that the influencer is effective at encouraging their followers to spend more, which directly impacts the overall ROI of the influencer marketing campaign.