By layering a series of high-value offers, you dramatically increase customer lifetime value. This higher LTV allows you to afford a much higher customer acquisition cost, effectively pricing competitors out of advertising platforms and starving them of new business.

A sophisticated paid acquisition strategy involves spending enough to acquire a customer at a cost equal to their first month's payment. Profitability is achieved in subsequent months and through referrals, enabling aggressive, uncapped scaling by focusing on lifetime value (LTV) over immediate ROI.

Wix's CMO views expensive brand activities like Super Bowl ads through a dual lens. While building the brand is key, the investment must also generate a measurable spike in relevant user traffic to be considered successful. All marketing, regardless of type, must be treated as an investment.

Instead of viewing them as separate efforts, businesses should link customer retention and acquisition. By unifying data to better re-engage existing customers via owned channels like email and SMS, brands increase lifetime value. This, in turn, reduces the long-term pressure and cost associated with acquiring entirely new customers.

To increase retention, offer subscribers a permanent, high-value upgrade (e.g., 'free bacon for life') that they lose forever if they cancel their service. This leverages loss aversion, making the cost of churning much higher than the monthly fee.

Many marketers are obsessed with customer acquisition cost. Digitas CEO Amy Lanzi emphasizes the 80/20 rule: 80% of sales come from 20% of existing customers. Aggressive acquisition tactics can alienate this loyal core, so a balanced "recruit and retain" strategy is essential for sustainable growth.

The company's paid acquisition strategy relies on outbidding competitors stuck at a 1x Return on Ad Spend (ROAS). By creating opportunities for repeat purchases (new stories, books for different family members), they increase their customer LTV. This allows them to profitably acquire customers at a cost their one-off competitors cannot afford, thereby winning the ad auction.

For products valuable only when others use them (like credit cards or social apps), Super Bowl ads are uniquely effective. The value isn't just reaching many eyeballs, but ensuring those eyeballs know *other* eyeballs are also watching, solving the chicken-and-egg adoption problem.

True competitive advantage comes not from lower prices, but from maximizing customer lifetime value (LTV). A higher LTV allows you to afford significantly higher customer acquisition costs than rivals, enabling you to buy up ad inventory, starve them of leads, and create a legally defensible market monopoly.