Paid Media

CAC (Customer Acquisition Cost)

Quick definition

Total marketing spend divided by new customers acquired in the same period.

What it actually means

CAC is the cost to acquire one new customer. For DTC brands, blended CAC is typically $30-$120 depending on category and pricing. Paid-CAC (only counting paid channels) is higher than blended CAC because organic, email, and referral traffic dilute the calculation. CAC payback period — how many months of customer revenue to recover the acquisition cost — matters more than raw CAC. Brands with strong retention (high repeat purchase rate, subscription) can profitably spend more on CAC because LTV is higher.

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mark@goshdigital.co · Dubai, UAE