Can Paid Advertising Work for a SaaS Startup?

Hal Smith
4 min readFeb 19, 2022

Yes — paid advertising will work for a SaaS startup if you can accurately calculate customer lifetime value (LTV) and customer acquisition cost (CAC). If these formulas are correct and if LTV > CAC when taking paid advertising spend into account, you have a sustainable path to customer growth.

However, many businesses generate tons of revenue and sales, but without the math on lifetime…

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Hal Smith

Founder of H Street Digital. Specializes in paid digital advertising for SaaS, Web3, or Fintech companies looking to accelerate customer acquisition efforts