Customer Acquisition Costs Dropped 9% During BFCM 2024
Black Friday and Cyber Monday (BFCM) remain crucial moments for e-commerce brands. Customers are actively looking to buy, and brands often increase their marketing efforts to meet that demand. At ThoughtMetric, we analyzed data from 100 e-commerce companies to understand how this seasonal surge affected customer acquisition costs (CAC) and advertising efficiency.
CAC Fell Compared to the Previous Month
Between November 29 and December 2, 2024, average CAC decreased by 9% compared to the previous month’s window (October 29 to November 1). Despite a more competitive advertising environment, brands were able to acquire customers more efficiently during the peak holiday shopping weekend.
Brands Increased Ad Spend by 25%
Brands significantly ramped up their advertising efforts during BFCM, with average ad spend increasing by 25% compared to typical levels. Importantly, that additional investment delivered results. The decline in CAC allowed businesses to stretch their budgets further and bring in more new customers during one of the busiest retail periods of the year.
Why This Matters Going Into 2025
The lesson is clear: shoppers are primed to buy during BFCM, and increased advertising spend can yield strong returns in the form of lower acquisition costs. However, to take full advantage of this opportunity, brands need accurate, real-time measurement tools to guide their decision-making and ensure budgets are used effectively.
How to Prepare for BFCM 2025
With BFCM 2025 approaching, e-commerce businesses should:
- Plan for elevated ad spend
- Establish clear campaign goals in advance
- Monitor performance metrics closely
- Be ready to act quickly as CAC trends shift
Brands that approach the season with a well-informed, agile strategy will be in the best position to capitalize on increased consumer demand.
See How ThoughtMetric Can Help You Win BFCM
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FAQ: Customer Acquisition and BFCM Strategy
What is Customer Acquisition Cost (CAC)?
Customer Acquisition Cost (CAC) is the total amount a brand spends to acquire a new customer. This includes advertising costs, marketing campaigns, and any other related expenses.
Customer Acquisition Cost (CAC) is the total amount a brand spends to acquire a new customer. This includes advertising costs, marketing campaigns, and any other related expenses.
Why does CAC often decrease during BFCM?
During BFCM, consumer buying intent is significantly higher. As a result, ad campaigns typically convert more efficiently, allowing brands to acquire customers at a lower cost, even when increasing spend.
During BFCM, consumer buying intent is significantly higher. As a result, ad campaigns typically convert more efficiently, allowing brands to acquire customers at a lower cost, even when increasing spend.
How much should I increase my ad spend for BFCM?
While results may vary, many successful brands increase their ad budgets by 20% to 30% during BFCM to capture more market share during peak buying periods.
While results may vary, many successful brands increase their ad budgets by 20% to 30% during BFCM to capture more market share during peak buying periods.
How does ThoughtMetric support BFCM planning?
ThoughtMetric provides real-time visibility into marketing performance, enabling brands to track CAC, identify top-performing channels, and reallocate budget instantly to maximize ROI during critical sales windows.
ThoughtMetric provides real-time visibility into marketing performance, enabling brands to track CAC, identify top-performing channels, and reallocate budget instantly to maximize ROI during critical sales windows.
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