Strategy

Why Your CAC is Rising (And What to Do About It)

Tarik A. · 28 February 2026

The Uncomfortable Truth

CAC is rising across almost every industry. Here's why — and what you can do about it.

Root Causes

1. Increased Competition for Ad Inventory

More brands are competing for the same eyeballs, driving up CPMs across every major platform.

2. iOS Privacy Changes Still Rippling

Attribution is harder, which means optimisation is harder. Algorithms need more data to learn, and they're getting less of it.

3. Creative Fatigue

Audiences are seeing more ads than ever. Standing out requires more creative volume and faster iteration.

The Fix: Channel Diversification

Don't rely on a single paid channel. A healthy mix reduces your dependency on any one platform's pricing.

Organic + Paid Flywheel

Build SEO and content as a long-term CAC reducer while running paid for short-term volume. Over time, organic picks up the slack.

Email as a Retention Engine

Acquiring a customer once and retaining them costs far less than re-acquiring. A strong email programme is the most underrated CAC reducer there is.