“No one ever got fired for hiring IBM” may not be as true today. But the premise holds; brand awareness means everything.
According to Crunchbase, in recent months, Series B funding to U.S. startups has fallen sharply. So far in 2023, investment is on track to come in at the lowest quarterly level in more than three years. So if you’ve got it, congratulations. Capitalize on it. With most Series B startups valued between $30 and $60 million, you have to start acting like a brand and not the creator of a product.
History has proven that brands outlive products. Always. Name almost any company you like and they no longer rely solely on the product they started with. (Yes, Coke. But you’re not Coke.) Whether you hire a digital marketing agency or start a project with a creative agency or hire a freelancer, here are a few reasons to go all-in on marketing:
Rising Competition and Market Differentiation:
Your product may be better than the competitors, but if competitors are out-spending you in terms of marketing dollars, no one’s going to care. People don’t always know what is better. What matters is what is perceived to be better. And name recognition is always perceived to be better. When you invest in marketing, it's your chance to create a brand identity, and your brand is a product unto itself. Every chief marketing officer, digital ad agency or successful brand manager will tell you the same thing. Products come and go, brands live on.
Scaling Customer Acquisition:
You've clearly already got some traction in the acquisition game. Use those customer assets to your advantage. Well-targeted ad campaigns using look-alike audience targeting will build awareness within a market segment. It's not just about making sales; it's about expanding your reach and becoming a force to be reckoned with. And your current customer profiles can help. Execute a digital marketing campaign combined with a targeted awareness campaign in a specific market and you will increase awareness if you create messaging that doesn’t bore people to tears.
Investor Confidence and Future Funding:
The people that gave you the Series B money want to see you out in the market. When they see you pouring resources into marketing, it shows them you're serious about growth and you know how to scale. Marketing builds your reputation, boosts brand perception, and gives you the upper hand when it comes to securing future funding rounds. When they hear the buzz about your videos, ads, and billboards, they feel good about their investment. As an ad agency that specializes in Series B startups and tech companies, we’ve done a lot of billboards in the 101 corridor between San Francisco and San Jose combined with targeted campaigns reaching I.T. Decision Makers and their associates. Make sure the message is engaging and you will succeed.
Expanding into New Markets:
Marketing is the best way to expand into new markets. Adapt what has worked and support your sales staff. Potential new customers are far more likely to take a meeting or consider your product if they’ve heard of the brand. Especially in the B2B space. And by tailoring your messaging, promotions, and initiatives to resonate with local audiences, you'll increase adoption rates in previously uncharted territories.
Customer Retention and Engagement:
Attracting new customers is crucial. But let's not forget the ones you already have. You’re a new company, which means you need to work hard to establish brand loyalty. Happy customers become your biggest cheerleaders, spreading the word about your awesomeness and bringing in new customers through the power of word-of-mouth. Market to them. Spend money to make them feel good about the brand so they tell their friends.
The message matters:
With Series B funding, you’re no longer in the “struggling startup” phase. Fear of failure should be much, much lower. It’s time to take risks with your messaging to get attention. We remind our clients at Division of Labor, when you’re creating awareness-building advertising and lead-generation campaigns, don’t worry if someone writes you an email or doesn’t like your video. Who cares what your friend’s mom says? Get attention. Make it emotional, honest, self-deprecating, edgy, ballsy, funny. Swing big. Now that you have a few bucks to spend, just make sure no one can ignore it.
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The Small Agency Blog is produced by Division of Labor; a top San Francisco ad agency and digital marketing firm that’s been named Small Agency of the Year twice by Ad Age. The award-winning creative shop services clients on a retainer or project basis. They also offer brand consulting services and hourly engagements for startups and smaller brands. Click here for a free consultation.