Cracking the CAC Code

The Metric Everyone Loves to Hate: CAC

Customer Acquisition Cost (CAC)—a metric so loathed, it could have its own support group. It’s the number that keeps founders awake at night and investors chomping at the bit. Sure, CAC answers the burning question, “How much are we spending to get a new customer?” But in practice, it’s less about clarity and more about existential dread—especially when the numbers are higher than they should be.

For most companies, big or small, CAC isn’t just misunderstood; it’s often mismanaged and miscalculated. And in today’s digital Wild West, where algorithms rule, managing CAC feels like playing chess blindfolded—against a robot.

CAC and the “Black Box” of Digital Marketing

Once upon a time, you could optimise Meta and Google campaigns with a surgeon’s precision. Now? These platforms are more like "trust me" black boxes. Tools like Meta Advantage+ and Google’s Performance Max automate optimisation but leave you clueless about what’s actually driving results. It’s like handing over your marketing budget to an overzealous AI intern who refuses to explain their work.

So, what does this mean for you? It means the game has changed. Algorithms might handle targeting, but your creative now has to work twice as hard to stand out. Without killer visuals and messaging, you’re just throwing cash into the void—and it’s laughing at you.

Creative that converts:

1. Keep It Authentic (But Don’t Be Generic)

User-generated content (UGC) is still a powerhouse, but it’s becoming painfully homogenous. A montage of someone unboxing, smiling, and nodding isn’t cutting it anymore. The key is real authenticity. There’s a fine line between ads that feel like genuine customer love and ads that scream, “I was paid to say this.”

• Highlight actual customers talking about how your product made a difference in their lives.

• Nothing wrong with celebrity endorsements, but don’t treat people like fools—they know the celebs are getting paid. To balance this, use a mix of celebrity endorsements and real-life customer advocates to hit both aspirational and relatable notes.

2. Tailor Video to Specific Promotions

If you’re running a deal or promotion, your video creative needs to be laser-focused on that offer. Forget vague branding or generic product highlights—be direct. Spell out the deal in a way that makes viewers stop scrolling:

• Flash the offer immediately (within the first 3 seconds).

• Use dynamic text overlays or bold calls-to-action (e.g., “40% off - limited time only!”).

Meta’s Advantage+ campaigns optimise for performance, but the algorithm can only do so much if your creative isn’t engaging. Ads that feel genuine—not overly polished or overly fake—drive trust, clicks, and, ultimately, conversions.

Why are these best practice?

1. Founder led

2. Promotion specific

3. ASMR *yes, this works!

4. Authentic person / real life “relatable” customer.

Video Is Non-Negotiable

From short TikTok-style reels that grab attention in seconds to polished brand stories that stir emotions, video builds the trust, credibility, and engagement that static content simply can not.

And yet, so many brands are still stuck in the past, and the truth is, without a solid video strategy, you’re wasting your money.

How to Win at Video

Here’s the playbook:

1. Mix It Up:

   • Influencer/UGC: Authentic, relatable videos build trust.

   • Product Demos: Solve problems visually. Show your product in action.

   • Brand Storytelling: Share your mission, your people, and your “why.”

2. Test Everything:
   A/B test hooks, formats, and styles like your CAC depends on it—because it does. Sometimes, tweaking just the first 3 seconds of your video can double engagement.

3. Batch Content Production:
   Plan your shoots meticulously. A single brand shoot, when executed well, can yield 6 months’ worth of content. Map out 10 key scenes to hit all your campaign needs—lifestyle, product demos, testimonials, founder content you name it.

The Dark Art of Managing CAC

One client came to me drowning in high CAC, their ad channels oversaturated and their creative blending into the noise. It was obvious to an outsider (me) that their brand story wasn’t connecting and video was the first place I looked.

Here’s what I did:

• Hired an influencer marketing freelancer to generate authentic UGC on a gifted basis, keeping costs low (mix of micro-influencers and customer ambassadors).

• Planned a strategic brand shoot with 10 versatile scenes to cover product demos, lifestyle shots, and testimonials (included good looking models & founder).

• Launched emotionally driven campaigns with 20 polished video assets staggered over six months to keep the messaging fresh and impactful (mix of UGC, influencer, brand and product videos).

The result? A 30% drop in CAC within three months and a 20% boost in lifetime value (LTV). It took a leap of faith from the founder to trust outside advice (and commit to the budget), paired with a strategic mix of smart planning and bold creativity on my part. Once the groundwork was laid, the black box algorithms did the rest.

Bigger budget?

If you’ve got a bit more budget to work with, it’s always worth taking inspiration from our friends across the pond. One brand I absolutely love, Arrae, really nails video content by going beyond the usual product-focused ads. They create behind-the-scenes, documentary-style videos that showcase the founders and team in action at shoot locations. Maybe it’s just the marketer in me (I love seeing the crew in action), but it taps into something universal—the curiosity about what it takes to build a business.

These videos make you feel like you’re in the trenches with the team, doing the hard work to create something meaningful. They also look like they’re having a pretty great time too, which is fun.

It’s a perfect example of how showing the human side of your business can connect with your audience on a deeper level.

Why Video Works

Video isn’t just engaging—it’s persuasive. For regulated industries like supplements, video is the perfect way to visually convey health claims using trusted voices like doctors or influencers. It’s also a great medium for testimonials, which feel more credible when they’re seen and heard, not just read.

But don’t get carried away. Too much video can turn your site into a chaotic mess. Keep it clean, purposeful, and focused on driving action—not distracting visitors.

As a bit of a tech nerd, I couldn’t resist checking out the backend of some of these brands and discovered a few impressive plug-and-play platforms offering innovative video solutions. These aren’t ads (no one’s paying me!), just tools I think are genuinely cool and worth exploring.

Platforms to Check Out

1. Tagshop
   Tagshop makes it easy to integrate shoppable video galleries and user-generated content onto your website. Imagine showcasing influencer content or customer reviews that visitors can directly shop from—it’s an interactive way to build trust and drive conversions.

2. Lyvecom
   Lyvecom takes live video shopping to the next level, allowing you to bring product demos, Q&A sessions, or influencer livestreams straight to your eCommerce site. It’s a dynamic way to connect with your audience in real-time and replicate the in-store experience online.

When people think about CAC, they often associate it with ad spend on Meta, Google, or TikTok. And while these platforms play a huge role in customer acquisition, the real battle begins once that customer lands on your site. CAC isn’t just about bringing people in; it’s about converting them when they get there. If your website isn’t optimised to seal the deal—whether that’s through seamless UX, trust-building content, or engaging visuals—your ad spend is just money down the drain.

CAC Is Just the Beginning

While CAC is important, it’s not the whole picture. Metrics like LTV-to-CAC ratio (aim for 3:1) and payback period are equally critical. Sometimes, the best strategy isn’t slashing CAC but maximising LTV and retention. You don’t just want customers—you want loyal ones…but we’ll cover this in depth another time.

Ad News You Need to Know

1. Meta Advantage+ Takes Over: AI-driven campaigns are simplifying management but putting even more pressure on creative.

2. Google Prioritises Video: Performance Max is all about short-form content—get on board or get left behind.

3. TikTok Search Ads Launch Globally: A chance to lower CPCs while it’s still fresh.

4. Apple’s Privacy Rules Bite Back: First-party data is king. If you’re still relying on cookies, rethink your strategy.

Plus: Meta Restricts Ads for Health & Wellbeing Brands: What You Need To Know

CLOSING THOUGHTS:
» Are We Returning to Brand Marketing’s Golden Age? «

Stay Bold, Stay Brilliant

Building a business is hard, but you don’t have to go it alone. Need help making bold moves? Let’s chat. Forward this to someone who needs a little inspiration, or drop me a line—I’m here to help.

Let’s make moves,
Beth

• Check out my Fractional CMO service here.

• Got questions or a topic you’d love me to cover? Email me at [email protected]

Disclaimer: I share advice from my own experience. Every business is unique, so tailor these ideas to fit your needs.