Marketing & Advertisingadvanced
Paid CAC
Definition
The cost to acquire a customer counting only paid channels, dividing advertising spend by the customers that spend actually brought in.
Why it matters
Paid CAC shows whether your ads pay for themselves, separated from free word-of-mouth customers that make blended CAC look better than it really is.
Example
You spend £5,000 on ads that bring 100 customers, so your paid CAC is £50 even if your blended CAC is lower.
Related terms
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