Every business wants more customers — but at what cost?Customer Acquisition Cost (CAC) shows how much you spend to turn a lead into a paying customer.At AdSite Labs, we help companies uncover why their CAC is high and design strategies to bring it down while keeping growth strong.
CAC is the total cost of convincing a customer to buy your product or service. It includes ad spend, marketing software, creative costs, and even staff time. When CAC is too high, profits shrink — even if sales look strong.
Simple Formula Example:
CAC = Total Marketing Spend ÷ Number of New Customers
High CAC means you’re paying too much to win each new customer — often a sign of weak targeting or inefficient campaigns.
By tracking CAC, you can see whether your marketing is sustainable or draining resources.
Understanding this number gives you control over your profitability and your growth strategy.
Most companies try to cut costs by spending less, but the real solution is smarter spending.Our consultants use the 4-Stage Growth Cycle™ — Analyze. Plan. Launch. Repeat. — to reveal where your CAC increases and how to fix it.
Book your complimentary ad spend review and uncover how AdSite Labs turns wasted budget into measurable results across Google, Meta, and LinkedIn.