3 Marketing Mistakes to Avoid while starting up
Navigating the uncertainity of ROAS
Starting up requires split focus across various functions that are integral to its success. Although this is an ideal scenario, Marketing becomes a predicament that startups cannot traverse.
Here are three mistakes you can probably avoid -
Mistake #1 - Hire Performance Marketing agencies based on case studies
I have had numerous bad experiences with agencies. A few guaranteed x Return on Ad Spend (ROAS). As enticing as it sounded, I fell for it and barely got a meagre x/4 ROAS from them. In the process, I spent a fortune on agency retainers and ad spends. But once you get the hang of running ads, you will develop that innate ability to see through the B.S.
👉🏼 Lesson: Find answers to the following before finalizing the agency
Look at the campaign structure for running ads.
There must be a clear way to track the performance of winning ads and ad sets. How often do they test new audiences and iterate on the creatives? How do they scale the budgets?
How much budget do they allocate during the learning phase?
Starting with low budgets is good, but sometimes you must be more aggressive. Venture-funded companies don’t start with 500 INR daily budgets for campaigns, but if your company is bootstrapped, slow and steady wins the race.
Who will provide the creatives and videos used in marketing?
The creatives, content and videos used are extremely important and must be well thought through. If the campaigns don’t work - Agencies will always blame the brand for providing subpar marketing collateral if the brand takes over its responsibility.
How big is their team, and who will work on these campaigns?
In most cases, big agencies assign amateurs to work on your brand if they don’t consider you a high-paying brand for the agency.
It is important to note that every successful brand almost always has its team for marketing. The long-term aim should be to hire the right resources after figuring out communication and positioning.
Mistake #2 - Generic Ads on Meta with High Acquisition Costs
With a ton of brands advertising to customers, offering something unique and getting attention is extremely important. The following approach is a good strategy for keeping your acquisition costs in check.
Before you start ads, engage in several offline events and showcase your product. Pay close attention to which message strikes a chord with your audience, motivating them to make the purchase. Record video testimonials and click pictures with these happy customers. Use this feedback and original footage to create Static Ad creatives tailored for Meta Ads campaigns.
Drive your next 1000 purchases through Meta and record the repeat purchase rate. If you see a 30% repeat rate over 2 cohorts - you probably are on the right track and can start scaling.
While there are various frameworks for advertising, it's important to keep in mind that the campaign setup on Meta must follow the basic marketing funnel principle.
Using FB Ad-Library to your advantage
Running out of ad-copy ideas is natural. Use the Facebook ad library to seek inspiration from your competitors. Also look at primary/secondary competitors from other countries to broaden your horizon.
Ad copies that contain emotion, humour, and pique curiosity are what work!
Each customer should be shown your Ad five to seven times to move them down the funnel and convert them into paying customers.
👉🏼 Lesson: Attention is key. The more emphasis on the hook of the ad and uniqueness in terms of product offering - the higher the chance of a potential customer clicking the ad.
Mistake #3 - Doing salesy Influencer Marketing
Initially, when I tried influencer marketing to promote my brand, I chose profiles with high followers and high engagement rates. All I saw in return were many likes, a few page visits, and many comments such as “Hot 🔥 🔥,” “Beautiful,” which had nothing to do with the product.
What I learnt the hard way is that many Influencers boost their following and get fake comments to increase their engagement rates. What was surprising was how rampant it is. It’s no wonder how every second person happens to be an Influencer!
Mass influencer campaigns cost a fortune, and avoiding these campaigns in the early stages is probably good for you unless you choose the right Partner.
👉🏼 Lesson: You need a Creative Campaign OR an Affiliate model. Also, focus on the Influencers that have real influence by looking at their Shares and Comments.
Steps to Finalize an Influencer
Step 1: Choose the right Influencer for your niche.
Step 2: Identify the Influencer’s audience to understand if it matches your Target Group (TG). You can use a tool to identify this. This will also show if they have an inflated following (i.e.) fake/paid followers.
Step 3: Choose influencers with a high engagement rate, at least above 2%. Influencer Marketing Hub has a free tool to check the engagement rates, like-comment ratio and any anomalies in follower growth.
Step 4: Manually go through the posts of the Influencer. It is always best to avoid an Influencer who promotes products every three posts.
Step 5: Once an Influencer is finalized, negotiate for barter or an affiliate model if they are open to it. Reduce the fixed fee as far as possible.
Step 6: Discuss with the Influencer and find a way to incorporate your product/service into their posting schedule. The aim should be to make the endorsement seem as natural as possible.
How to Determine the Success of an Influencer Campaign?
The most common ways are:
Asking the Influencer for post insights.
Using Google Analytics URL campaign builder and generating a customized link through Bit.ly. Doing so will give you a lot of information about the campaign.
Creating customized coupon codes/affiliate sales for each Influencer. Doing so would help track the customer journey and source of traffic.
To have an influencer campaign stand out among other brands - always integrate it into a larger purpose-driven campaign. Each influencer's post should be used to drive home that purpose. Here’s an example of a campaign run by a skincare brand.
Making mistakes is an everyday affair in a startup. What is important is learning from these mistakes and doing it the right way after.