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So the higher the pricepoint of the item, the harder it is to actually acquire a customer. To convince someone to buy subscription to a $60 box of food is quite
by marrone12 9y ago
So the higher the pricepoint of the item, the harder it is to actually acquire a customer. To convince someone to buy subscription to a $60 box of food is quite the endeavor.
You also need to be wary about how they exactly calculate CPAs based on ad buys. For instance, if they just comissioned a large scaled TV ad buy, that's millions of dollars they have to pay now. TV advertising has a long tail of user acq as it takes time for the message it wear in to a user.
So if those millions hit in the billed quarter, they could still get customers in a later period and the CAC would change.
- shostack 9y agoChannel-specific CPAs become very fuzzy and downright misleading the higher up the intent funnel you get. Things like display, TV, etc. are notoriously difficult to measure the exact impact of. Thus, looking at all marketing expenses rolled up is really the only safe way to capture all that value for this sort of math.