Traffic Acquisition Cost - TAC

Categories: Tech, Marketing

Internet media company term. You drew some number of new users to your site, and each consumed 10 pages, on which you sold ads. You spent some dollar amount on marketing (probably checks made out payable to Google Search).

What did that traffic cost you? Was it worth it? Via GOOG, you can do the math now. You spent $1,000 for so many eyeballs to view your website ads. That money drove to you 100,000 clicks, and of those clicks, 500 actually bought from you. And when they did, the average sale was $100, for total revenues of $50,000, and a contribution margin of $12,000.

So...was it worth it? Oh, absolutely-and-a-half. Huge bargin. The hard part: trying to perform the same magic of making 12x your money back on one 2-week campaign, while spending $5 million in hopes of making $60 million. Yeah, not so easy now.

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Finance: What are Phishing Scams?8 Views

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Finance a la shmoop what are phishing scams? all right you know when you're out [Woman on fishing boat with Dad]

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on the lake with dad just the two of you trying to haul in some trout when one of

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the fish pulls a fast one on you and hangs one of these things on your line [Fishing line with boot attached]

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yeah total scam we're telling you you cannot trust anything that breathes

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through the side of its face anymore these days really okay so that's a not

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quite a phishing scam although the general idea is similar it's someone

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trying to make you believe something that isn't exactly true with a phishing

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scam the venue switches from the great outdoors to cyberspace never gotten an [A wooden hut appears]

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email from a Nigerian prince who's temporarily down on his luck and if

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you'll just wire him three hundred bucks in cash immediately well immeasurable

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riches await you it sounds like a little good to be true there right yeah and it [Man gives thumbs up in room]

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is well usually that Nigerian prince is an overweight balding guy named Jerry

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living in his mom's basement in a suburb just outside of Cleveland he'd love

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nothing more than to hook a sucker you and take that 300 bucks [Jerry on his computer]

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off your hands but many times the scam is much more intricate than that often

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its identity thieves who are trying to con you into releasing private

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information such as your social security number or credit card information mm-hmm

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that's out there well they might try to convince you that

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their Amazon support or your bank or your long-lost uncle Yusuf who just [Person flicking through e-mails]

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needs a few personal details before he can FedEx you your large inheritance

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don't fall for any of it anytime you're randomly asked to divulge any sensitive

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information or pop a wad of cash in an envelope stop for a second and ask

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yourself whatever you might be well a fish and then ask yourself whether you'd [Cash burning]

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like all your hard-earned money to be sauteed or flame-broiled good stuff...

Find other enlightening terms in Shmoop Finance Genius Bar(f)