When was the last time you used a search engine that wasn't Google, or a social media outlet that wasn't owned by Facebook? For most Americans, it's probably been a while. In fact, market-research figures have shown that Google gets about 77 percent of U.S. search advertising revenue, Facebook's share of mobile social media traffic is about 75 percent, and Google and Facebook combined control about 56 percent of the mobile ad market. And let's not forget about Amazon, which takes about 70 percent of all e-book sales and 30 percent of all U.S. e-commerce. This trifecta, along with the other big players in the tech industry are thriving, and poised to quickly buy out any startups that represent a potential threat or asset.
Customer acquisition is vitally important for any business, but it can be tricky to get just right. In order to be viable, businesses need to find the perfect balance of the cost to acquire a new customer, and the ability to monetize the customer. You can find your business's customer acquisition cost using this simple formula:
Modern day major tech companies such as Facebook, Instagram, Dropbox, and Snapchat, to name a few, all started as an idea. However, what sets their ideas apart from start-ups like Electroloom, is that the founders first launched their idea with a Minimum Viable Product, or MVP.