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Customer Acquisition Cost (CAC)

Customer acquisition cost is the total amount a business spends to acquire one new paying customer, calculated by dividing total acquisition spend by the number of new customers gained in a given period. In digital marketing, CAC is directly affected by the efficiency of both ad targeting and the post-click experience. A precisely targeted ad that lands on a generic page drives up CAC because it takes more clicks to produce one conversion. Reducing CAC without changing ad strategy typically comes down to improving the post-click experience so a higher percentage of existing clicks actually convert. 

See how Fibr AI reduces CAC without changing ad strategy →