Advertising and media spend
- A large portion of customer acquisition cost (CAC) goes into digital advertising.
- Paid campaigns run across social media, search engines, and video platforms.
- Programmatic ad buys target specific viewer segments to drive app installs.
- Celebrity endorsements and influencer tie-ups increase content visibility.
- Festival and new release promotions spike acquisition cost temporarily.
Platform partnerships and bundles
- OTT platforms pay telecom operators or OEMs to bundle subscriptions.
- Revenue-sharing or upfront fees are agreed for inclusion in recharge packs.
- Smart TV brands may charge placement or promotional integration fees.
- These costs are factored into CAC for bundled subscriber acquisition.
- Aggregator platforms also charge commission or hosting fees per user acquired.
Introductory offers and discounts
- Free trials, first-month offers, and annual plan discounts affect CAC directly.
- Cashback, coupons, or referral incentives increase short-term acquisition cost.
- Discounts reduce ARPU (Average Revenue Per User) during the entry period.
- The cost of onboarding inactive users is higher due to retention gaps.
- Some platforms extend free tiers to maximize future paid conversions.
Influencer and content-driven marketing
- Cost includes content seeding, sponsored reels, or branded storytelling campaigns.
- Influencer fees vary based on reach, language, and market category.
- Early access screenings or previews for influencers are considered part of CAC.
- Engagement through memes, challenges, and user-generated content builds awareness.
- ROI is tracked using affiliate links or unique promo codes.
Technical and onboarding support
- Costs include app store listing fees, platform optimization, and load testing.
- Localized UI/UX enhancements are made to reduce acquisition friction.
- Regional language support and user help desks incur additional overhead.
- Training content and FAQs are developed to assist first-time users.
Smooth onboarding experience increases initial conversion but adds upfront expense.