Comparison
CAC vs ROAS
CAC focuses on customer acquisition cost, while ROAS focuses on revenue attributed to advertising spend.
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Customer Acquisition Cost (CAC)
Customer Acquisition Cost is the aggregate sales and marketing cost required to acquire one net new customer within a specific period.
CAC = Sales & Marketing Spend / Number of New Customers- Category
- Analytics & Measurement
- Used for
- Forecasting, Budget allocation, Performance diagnosis
Return on Ad Spend (ROAS)
ROAS measures gross revenue generated for each dollar spent on advertising.
ROAS = Revenue Attributed to Ads / Ad Spend- Category
- Performance Marketing
- Used for
- Forecasting, Budget allocation, Performance diagnosis