Scaling up tech start-ups with performance marketing has moved from being a nice-to-have to being a must-have and as a tech founder trying to drive growth quickly, it’s very tempting to throw money at the problem in the form of Ads on various platforms like Facebook and Google.
However, it doesn’t take a discerning Founder too long to realize that the problem of growth especially using performance marketing is a many-headed monster that is more complex than it seems at first glance.
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In very simple terms, Performance Marketing is a marketing specialization focused on online channels where companies pay based on results.
Some of the problems that can emerge when trying to scale with performance marketing include conversions scarcity because when you notice that no matter what you do, your conversions remain below the industry average.
To experience the amazing benefits shared above, there are a few principles that I have used that I always recommend.
The great thing about these principles is that they are platform-agnostic and can be applied to any advertising platform being used because they are more about the way marketing is approached than specific tactics that are more platform-dependent VCXZ. The principles are:
- More, not less– In the world of visual creators, the phrase “less is more” is celebrated, but when it comes to running paid advertisements for performance marketing campaigns, more is more and more is good. It’s pretty tempting to cut back on advertising when it isn’t performing as expected, when more tests are conducted, the Founder or other decision-maker has more data to work with, learning can be maximized and the start-up is given more opportunities to succeed.
- Whole, not parts– There are two ways to apply this principle; The first is how the product customer funnels are designed and the second is how the results are evaluated. Both ways feed off each other. When designing a campaign, it is important to be clear on the purpose of the campaign and who the audience is. Whatever it is, it’s important to be clear as this would help with understanding the different stages in the funnel and how to design for them.
- Screams, not whispers– Testing more has been established as a core principle for scaling, luckily for most founders/marketers, ideas for a/b tests to conduct come in abundance but seasoned marketers know that not all ideas should be tested. When deciding on what experiments to conduct, it is critical to experiment with real changes so that the impact can be accurately understood and statistically significant results generated.
- Slow, not fast– The approach to scaling budgets should be cautious. It is not ideal to start out by scheduling the budget to be spent completely on one, two, three, four or even five campaigns. It is best to stagger the spending, doing it cautiously until multiple winning Campaigns/Adset/Ad campaign combinations are found. This ensures that Cost Per Acquisition and results are kept optimal and at their lowest.
- In, not out– of the box – To avoid getting banned/restricted, it is crucial to follow the rules of the platforms that are used for advertising religiously. For social media advertising platforms, the customer is not king, the user is. This means that they would be quick to weed out advertisers that are perceived to hurt the user experience through poorly produced, ethically wrong, or outrightly illegal ads.
Overall, when these are implemented, they make better results in the near and long term not only possible but consistent.
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