Why is CAC rising
Posted: Tue Jan 28, 2025 10:56 am
1) Increased competition. The more companies advertise in your niche, the more expensive clicks and impressions become.
2) Low conversion. If your website or landing page is not working, traffic turns not into customers, but into money that goes down the drain.
3) Errors in the target audience. If advertising campaigns are set up incorrectly, you attract users who are not interested in your product.
4) Lack of end-to-end analytics. Without understanding what part of the marketing budget actually brings in customers, you risk investing in ineffective channels.
How to calculate CAC correctly
It all starts with proper accounting. Take into account all austria consumer email list marketing expenses, including:
Costs of advertising campaigns (Google Ads, Yandex.Direct, social networks);
Salaries of marketers, designers, copywriters;
Cost of using analytical and CRM tools; • Content production (videos, articles, photographs);
Platform commissions (for example, when placing ads on marketplaces).
Don't forget about the frequency. For example, if you have long-term campaigns, divide their costs proportionally to the period you are analyzing.
How to Lower CAC: A Step-by-Step Plan
1. Improve traffic quality
Not all website visitors are equally useful. The goal is to attract those who are interested in your product. How to do this?
Use detailed targeting in your advertising campaigns.
Create personalized content that engages your target audience.
Work on SEO to attract organic traffic.
Example
An online clothing retailer started using Lookalike audiences in Facebook Ads, targeting users similar to their current customers. This increased conversions by 30% and reduced CAC.
2) Low conversion. If your website or landing page is not working, traffic turns not into customers, but into money that goes down the drain.
3) Errors in the target audience. If advertising campaigns are set up incorrectly, you attract users who are not interested in your product.
4) Lack of end-to-end analytics. Without understanding what part of the marketing budget actually brings in customers, you risk investing in ineffective channels.
How to calculate CAC correctly
It all starts with proper accounting. Take into account all austria consumer email list marketing expenses, including:
Costs of advertising campaigns (Google Ads, Yandex.Direct, social networks);
Salaries of marketers, designers, copywriters;
Cost of using analytical and CRM tools; • Content production (videos, articles, photographs);
Platform commissions (for example, when placing ads on marketplaces).
Don't forget about the frequency. For example, if you have long-term campaigns, divide their costs proportionally to the period you are analyzing.
How to Lower CAC: A Step-by-Step Plan
1. Improve traffic quality
Not all website visitors are equally useful. The goal is to attract those who are interested in your product. How to do this?
Use detailed targeting in your advertising campaigns.
Create personalized content that engages your target audience.
Work on SEO to attract organic traffic.
Example
An online clothing retailer started using Lookalike audiences in Facebook Ads, targeting users similar to their current customers. This increased conversions by 30% and reduced CAC.