Customer Acquisition Cost

Goals

To find information in regard to the cost of acquiring a new customer via Facebook Ads and Google Ads for an e-commerce website that sells walking canes in the U.S. to women aged 50 to 80 years.

Early Findings

Cost of Customer Acquisition: Facebook Ads and Google Ads

  • In 2018, Facebook ad spend increased by 50% year-over-year to $11.7 billion.
  • A survey of advertisers including ad agencies that specialize in Facebook ads revealed that 28% of respondents have a customer acquisition cost (CAC) of less than $5.
  • Another 28% of respondents to the survey reported a CAC of between $6-$10.
  • The above figures show that more than 50% of advertisers on Facebook report a CAC that is less than $10.
  • On the extreem end of the scale, 7% of respondents reported a CAC greater than $100. This is not unusual for service industries i.e. B2C and B2B as well as higher-end consumer goods.
  • For Google Ads, the average cost per click is between $1 and $2.

Fashionable Canes

  • According to SimilarWeb, 59.3% of traffic to the Fashionable Canes website comes from search.
  • The company has a total of 374 organic keywords and 116 paid keywords. From the search traffic, 59.41% comes from organic keywords while 40.59% comes from paid keywords.
  • On the other hand, 3.62% of traffic to the Fashionable Canes websites comes from social.
  • The breakdown for the company's social traffic includes: Facebook - 56.3%, Reddit - 22.54%, YouTube - 11.76%, and Pinterest - 9.41%.

Proposed next steps:

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