Paid Acquisition
Definition
Paid Acquisition: Paid acquisition refers to customer acquisition strategies that involve paying for advertising or promotions to attract users. This includes search ads, social media advertising, display networks, sponsorships, and affiliate programs. Unlike organic growth, paid acquisition provides immediate traffic but requires ongoing investment and careful unit economics management.
Example Usage
βWe allocated $50K/month to paid acquisition on Google and Facebook, achieving a 3:1 LTV:CAC ratio that made the spend profitable.β
Common Misconceptions
Related Terms
Customer Acquisition Cost
Customer Acquisition Cost (CAC) is the total cost of acquiring a new customer, including marketing, sales, and onboarding expenses. CAC is calculated...
Organic Growth
Organic growth refers to customer acquisition and revenue growth achieved without paid advertising. This includes word-of-mouth, SEO, content marketin...
LTV to CAC Ratio
The LTV to CAC ratio compares customer lifetime value to the cost of acquiring that customer. A ratio of 3:1 or higher is generally considered healthy...
Conversion Rate
Conversion rate is the percentage of users who complete a desired action, such as signing up, starting a trial, or making a purchase. It's calculated...
Explore More Resources
Browse Tools
Discover 100+ vetted tools for every stage of your startup journey
Explore all toolsBuild Your Stack
Take our personalized quiz to get tool recommendations for your startup
Start the checklistRecommended Reading
Curated books to help you learn, grow, and succeed as a founder
View book recommendationsListen & Learn
Top podcasts covering startups, product, growth, and entrepreneurship
Discover podcastsHelp us improve this definition
See something that could be clearer or more accurate? Let us know.


