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The online CAC is wack.
It’s been years in the making, but “online” brands like Warby Parker are turning to physical retail stores as a core marketing strategy because the customer acquisition cost (CAC) is cheaper than ads on platforms like Facebook. And, hilariously, easier to track.
Digital advertising costs exploded during the pandemic, as people were stuck at home and companies shifted their marketing to screens. Apple’s decision in 2021 to allow phone users to opt out of tracking by apps such as Facebook further increased costs, Mr. Lai said, by making it more difficult for apps to gather data on consumers’ interests. That limits advertisers’ ability to efficiently target potential customers.
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