How Does the iGaming Industry Stack Up in terms of CAC?
Customer Acquisition Cost, or CAC for short, is an essential element of any industry’s overall marketing strategy. The CAC is your baseline for working out how much it costs you to get those much needed customers on board. However, CAC metrics will vary quite greatly between different industries.
How does the iGaming industry, which is one of the most dynamic and fastest growing in the world, measure up? While the old adage that “comparison is the thief of joy” is quite true, it is still, nevertheless, interesting to see how the iGaming industry compares in terms of CAC.
General Overview of CAC by Industry
Within almost all industries and enterprises, there are two main types of CAC – organic and inorganic CAC.
Organic CAC can be roughly defined as any type of marketing strategy that involves SEO (Search Engine Optimization) and organic social media marketing. On the other hand, inorganic CAC can be roughly defined as paid advertising, SEM or Search Engine Marketing, and paid social media marketing.
For example, in a recent CAC by industry study, it was found that within the commercial insurance industry, the average organic CAC ran at about $590, while inorganic CAC ran at about $600 per customer.
The medical device industry organic CAC was around $501, and inorganic CAC around $755.
Recent studies involving a number of UK iGaming entities put the average CAC at between $280 to $1400 (per customer).
Customer Acquisition Cost Overview – iGaming Industry
The iGaming industry is what they call “a different animal”, which essentially means that comparing it to other industries is a bit tricky. This is because of the intrinsic dynamics associated with iGaming as a whole.
For instance, when calculating CAC for any casino or other iGaming entity, a number of factors need to be considered, including:
– online, offline or hybrid (both online and offline) casinos
– target market
– average by game
– average by game type
– total average (globally) of all online casinos
– non-paid channels acquisition
Of course, these are just a few of the factors that iGaming enterprises will include in their CAC metrics.
CAC within the iGaming industry can vary greatly based on the type of marketing involved in acquiring new customers during certain periods, types of promotions and so on. In terms of measuring up to other industries, one could say that iGaming is far more ‘dynamic’ or volatile in terms of CAC.
Learn more about Customer Acquisition Cost here.