How is your ad spending going? Whats your CAC?
I’m curious to know what ad platforms are being used, how much is spent to acquire a customer, and how much the product costs?
I’m curious to know what ad platforms are being used, how much is spent to acquire a customer, and how much the product costs?
This varies from business to business based on your targeting, your objective and how efficiently you run your ad campaigns.
For example, I use to spend ~$10k per month for customer acquisition for a B2C product using Adwords and eventually I was able to bring the CAC down to ~$2.25 (targeting US, Australia, EU etc)
Where I work currently, we rely heavily on Facebook ads and our CAC is upwards of $5 and that too for the Indian audience. So we use Facebook ads majorly for engagement and retention, rather than acquisition.
So, do you use retargeting? curious if you use banners or anything with retargeting?
Also, do you charge for your B2C product? or is that a free tier?
We use retargeting extensively and we segregate it based on user behavior like how much time a user spent on our site, how many pageviews the user did, first-time visitors vs returning visitors etc.
FB ads have various different formats and objectives that you can choose from and we utilize a majority of them, from simple link based ads to videos. As I work with a media company, we have a ton of content and we have the flexibility to repackage the content in multiple ways and utilize multiple formats of Facebook ads.
And since we're a media company without a paywall, our readers are not exactly our customers, we generate revenue through brand associations. But a media company needs readership so it's important for us to engage and retain our readers which is the prime use case for our ad spending.
Also, we hardly use Adwords because the results have been suboptimal as compared to FB ads... but this is different for every business too.