Acquisition Channel Efficiency measures the return on investment for each traffic source or campaign. It compares the cost of acquiring users or customers through different channels—like paid search, organic, email, or social media—with the value those channels generate.
You calculate Acquisition Channel Efficiency by dividing the value generated (such as revenue or conversions) by the cost of the channel. The higher the ratio, the more efficient the channel is.
Acquisition Channel Efficiency = Value Generated ÷ Cost of Acquisition for the Channel
Acquisition Channel Efficiency = Value Generated ÷ Cost of Acquisition for the Channel
If your paid search channel generated $5,000 in revenue from $1,000 in ad spend, the Acquisition Channel Efficiency would be 5. This means you earned $5 for every $1 spent.
OWOX BI helps you track Acquisition Channel Efficiency across campaigns by unifying marketing spend and performance data. Identify which channels bring in the most value and invest in those that truly drive results.
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A good Acquisition Channel Efficiency ratio depends on your business goals, but a value greater than 1 generally indicates profitability. The higher the ratio, the more return you're getting from each marketing dollar.
A ratio below 1 means your channel is costing more than it's generating. This could signal overspending, poor targeting, or underperforming creatives.
Benchmark the cost and performance of each channel to prioritize spend and reduce waste.
Focus on improving efficiency in costly channels by refining audience targeting and creative testing.
Double down on channels with high efficiency and strong conversion potential to grow impact while keeping costs under control.
