CAC (Customer Acquisition Cost): How to Calculate Customer Acquisition Cost
CAC is a metric that reflects a company’s expenses for acquiring a single customer. It includes advertising costs, marketing team salaries, and the cost of the services used.
This metric helps evaluate the effectiveness of marketing channels and allocate the budget.
It can be calculated using the formula:
CAC = total advertising expenses / total new customers over the reporting period
The longer the reporting period, the more accurate the calculation.
Marketing terms in simple language.
SMM Team marketer glossary.
Modern marketing evolves so fast that it's impossible to know all terms and abbreviations. And it's not necessary. We've collected in one glossary concepts from digital marketing, SMM, analytics, advertising, automation, as well as from related fields — design, content and production.
Use search if you know the exact spelling of a term, or choose the letter you need to quickly find the meaning. Each term is explained simply and clearly — so that not only a specialist, but also a beginner taking their first steps in marketing can understand.
The SMM Team glossary will help you navigate tools, metrics and processes that every marketer and SMM specialist encounters faster. Share the page with colleagues, team or students — together we'll make the marketing environment clearer and more accessible.