Acquisition Channels Explained

Acquisition Channels Explained
March 19, 2020 Laisa Lopes

Every marketer aims to maximize every dollar spent on advertising. Despite there being a growing number of acquisition channels, marketing’s return on advertising is becoming more expensive. The cost of acquiring new clients has grown by about 50 percent in the last five years.

This is why businesses need to be careful when selecting one or more acquisition channels, so they can enjoy a decent margin for their return on investment. In this article, we’ll look at some of the best-paid acquisition channels for online merchants.

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#1 Social media – Paid ads

You can advertise on almost every social media platform nowadays, from Facebook to Instagram to LinkedIn. Here, it’s best to choose the acquisition channels that house your target audience. 

Pinterest, for example, can be great if you want to target a predominately female population since, it touches this particular demographic group. On the other hand, LinkedIn can be an excellent pick if you’re going to reach executives, as business-people use it. However, if your product has a broader audience and you want a more extensive reach, then it is best to stick to Facebook and Instagram, two major platforms that are owned by the same company. 

Thanks to more than 2.41 billion monthly active users, Facebook can be a great platform to acquire new customers. It’s popular among both men and women and is used by people of all ages, including teens. However, it isn’t the most popular option in the US, and only about 10.1 percent of Facebook users reside in the US or Canada. 


Monthly Active Users (MAUs) In Millions. Source: Facebook

On the other hand, about 36.1 percent of all Instagram users are in the US, with 25 to 34 being the largest age group.



It’s now also possible to sell via Facebook. About 15 percent of social media users shop on the platform, which is pretty good as Facebook ranks number two on the list. Pinterest tops the chart with an impressive rate of 47 percent. More than 90 million small businesses use the platform, and about 87.1 percent of these use it to market goods and services.

Despite increasing competition, the average price for a Facebook ad fell by about 4 percent in the second half of 2019, while impressions increased by 33 percent. This means more people will now be able to see your ad for a lower rate.


Facebook Ads on Mobile

The average user clicks on 11 ads in a month, but very few actually make a purchase. The best way to push people to click an advertisement is to use video ads and to ensure you choose the right demographics when setting up a campaign.

💡 Note to merchant: The average advertising cost on social media varies, with a CPC (cost-per-click) ranging from $0.38 per click on Twitter,  $0.97 on Facebook, to $5.26 on LinkedIn. You can start bidding as low as $1, but keep in mind that you can go lower. It’ll depend on factors such as your audience, age group, interest, etc. 

#2 Google Shopping and Adwords

Google Shopping is designed to help users find what they’re looking for. It offers price comparisons and is considered a reliable name. It can improve your reach and help you stand out among your competition.

Shopping ads have been proven to be effective in improving the CTR (click-through rate) and decreasing the CPC. This is because those who use the platform are more likely to buy a product. Google Shopping ads drive about 76.4 percent of retail search ad spend, which equals to about 85 percent of all clicks.


It’s one of the most popular acquisition channels among all kinds of businesses, however, it can be extremely expensive for certain companies. That’s due to ongoing bidding wars with those who carry unlimited budgets (making it hard to match when you have a capped marketing budget yourself).

Unlike Facebook, Google Adwords or Shopping ads are a bit more of a challenge to set up. However, Google offers excellent help, including free vouchers to new merchants in order to unite retailers to challenge Amazon. The platform works well on all devices and supports voice-activated searches. 

#3 Classifieds websites – Kijiji and more

The world still checks classifieds, so why not count on platforms like Kijiji and Craigslist? Kijiji is one of the best options if you’re looking for speed. Despite having fewer members than other similar platforms, it wins when it comes to speed since a large number of Kijiji users are active and genuine. Other options like Craigslist may work as well, but they are usually slow and full of scams. If you want to save time and sell in Canada, then it is best to stick to Kijiji. 


It has over 16 million users who post more than 160,000 ads per day. It’s quite popular among Canadians and is visited by about 30 percent of the country’s population every month. If you’re looking for acquisition channels targeting American users, then Craigslist may be a better option. However, it is also available in 70 countries. It has about 60 million users who post 80 million ads per month. 

💡 Note to merchant: Craigslist is more popular among employers and employees, whereas Kijiji is a better option for electronics, services, and household items.

#4 Reviews and price comparison sites

According to a report, about 80 percent of buyers search online before they buy a product or service. This shows the importance of being on the web since most buyers will check third-party sites, including price comparison sites, before making a purchasing decision. 

In fact, according to one research, about 41 percent said they usually compare prices, and about 28 percent said they compare prices about half the timeShoppers search to be fully informed on all aspects, from best delivery options out there, to the best pricing, coupon offers, you name it…before making that final purchase.

>> If you’re looking to diversify your sales channels, check out our article ‘Price Comparison Engines – A Good Strategy to Increase Sales’.

In addition to this, consider getting your product reviewed since the average buyer checks about ten reviews before trusting a business. Most review sites or influencers require brands to send samples or to request a review. If your product is big in size, they may review it without you having to send a manual request or payment. However, keep in mind that these reviews are real and may not always be very positive. 

Remember that what works for one online store may not work for others. It is essential to pay attention to the numbers and to choose an option that works for you and your wallet.


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