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The right way to reliably construct a million-dollar advertising engine beginning with $100.

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The right way to reliably construct a million-dollar advertising engine beginning with 0.


I’ve helped 79 startups construct million-dollar advertising engines within the final 4 years. I’ve been a startup marketer for 20 years, and I’ve helped develop practically 100 corporations from $0 to tens of millions of income. Not as a result of I’m such a genius marketer, however as a result of there’s a system that may take any new product, function, or startup from $0 to $1MM+ in income dependably.

And I’ll share it with you on this weblog.

Desk of contents

The Problem

Advertising an progressive new function or product would do nice out there if solely individuals would take you critically. Whenever you get a lead on the telephone or when somebody tries out an precise demo, they love what they see, however there’s a giant downside: most individuals don’t wish to see what you constructed.

There’s a motive for this and it’s easy: nobody cares about your product. This isn’t a condemnation of your product, however fairly a pure a part of life.

Individuals don’t need one other factor to concentrate to. They need somebody to resolve an issue that they’ve. If you happen to don’t body what you or your group constructed into an answer to an issue that you simply’re addressing, you can find it very onerous to chop via the noise and get consideration.

However there’s a catch. So as to place your product as an answer to an issue, you must resolve a 3-variable equation:

I don’t understand how good you’re with calculus, however the “Three-Physique Downside” is famously unsolvable.

However we don’t pack up and go house. We don’t want a exact reply on the planet of enterprise for the right doable answer of viewers, downside, and provide. We simply want one thing shut sufficient to earn cash.

And that’s simpler.

All now we have to do is collect hundreds of information factors, and we are able to resolve this with the facility of statistics. “1000’s of information factors” would possibly sound scary, however there’s a straightforward option to shortly get these hundreds of information factors: paid advertisements on Meta.

There, you will discover your viewers—B2B or B2C, I might be aware—and see in the event that they care about what it’s that you simply inform them they should repair. The best way we measure this curiosity is through the click-through charge on the advertisements. 

I do know what you’re considering: CTR is a horrible metric, and solely horrible entrepreneurs use it to justify why they will’t earn cash. Maintain on a second: consider a easy advert as a easy one-question survey. What you’re asking is “would you like this?” and the overwhelming reply can be “no”.

But when somebody clicks? That’s a sure. 

We’re not constructing the entire of your advertising course of but. We’re simply measuring curiosity initially of the customer’s journey.

Discover I didn’t say “high of the gross sales funnel.” I [personally think the “sales funnel” is a terrible model, but let’s just focus on the buyer’s journey as a series of discrete steps instead of getting sidetracked.

If we’re just measuring interest at the surface level, CTR is a perfectly fine metric to start with, but the catch is that you can’t use any of the marketing tricks you know to boost CTR. 

Attractive ads get clicks because they’re attractive. You don’t want to manipulate your ad performance that way. So you have to make stupid-looking ads like this:

What we’re doing here is seeing if people who are not actively looking for your product, but who you target as interested in your product, might interrupt their latest doom scroll to check you out.

You want to see 3 things here:

1. How many people click? Is your CTR north of 1%

2. What was that cost per click? Was it less than 1.3% of your LTV?

3. How long was time on site? Was it over 30 seconds?

If you get a yes to all of these, you have an interested audience. If you don’t get a yes to them, then either your ad doesn’t get people’s interest (low CTR), your audience is maybe too expensive to acquire through paid channels (high CPC), or your landing page isn’t very compelling (low time on site).

—

💡 Minimum viable sprint ads run with a $100 budget for just 48 hours. That’s it. You’ll get thousands of data points (by which I mean “impressions” which either did or did not lead to a click) per ad. You’ll get statistically relevant data for any marketing question you want answered in just 2 days.

—

If you have an interested audience, you go from “Awareness” stage of that pyramid and start to figure out how to get the buyer across the attention gap and into an Acquisition mindset.

Let me explain with a story:

Growing GrowthSpace’s Addressable Market

GrowthSpace is an HR tech company that provides training to people in mid to large companies. This is a really crowded space and they faced headwinds from numerous competitors, some of whom were substantially better funded than they were. 

Key challenges for companies in the HR software space often include:

– High customer acquisition costs on platforms like LinkedIn
– Difficulty in distinguishing themselves in crowded markets
– Ineffective lead generation and conversion strategies
– Limited budget for extensive marketing campaigns

Their LinkedIn-focused strategy worked, but it was expensive, with costs per lead over $200. This limited who they could provide services to, simply because they needed to keep their pricing high enough to still thrive on a high cost per lead.

By implementing our data-driven approach and Minimum Viable Sprints (MVS) methodology, we were able to dramatically transform GrowthSpace’s marketing strategy and results:

1. Diversified Lead Generation:
We expanded beyond LinkedIn, using platforms like Meta (where we dropped CPL to $36) and finally Pinterest (where we dropped CPL to just $12). This diversification not only reduced dependency on a single, expensive channel but also opened up new audience segments.

2. Significantly Reduced Acquisition Costs:
By optimizing campaigns across multiple platforms and continuously refining targeting, we managed to bring down the cost per lead from over $200 to under $20. This 90% reduction in acquisition costs was a game-changer for GrowthSpace and helped them find a new addressable market and persuasively argue to investors that they were ready for a follow-up round of investment to tackle this new opportunity.

3. Data-Driven Decision Making:
By implementing our MVS methodology, GrowthSpace adopted a culture of continuous testing and optimization. This allowed them to make informed decisions quickly and adapt their strategy based on real-time data.

Putting this into practice (another story)

Hippoc, an innovative AI-powered ad performance prediction tool, faced challenges typical of many tech startups:

– Difficulty in gaining market trust despite groundbreaking technology
– Struggle to convert interest into actual sales
– Limited resources for extensive marketing campaigns
– Need to prove market potential to secure funding

Applying a data-driven Minimum Viable Sprints (MVS) made a huge difference, and quickly:

1. Cost-Efficient Acquisition:
Our targeted approach led to a 66% decrease in Cost-Per-Lead (CPL), making customer acquisition much more sustainable.

2. Validated Market Potential:
The improved metrics provided concrete evidence of Hippoc’s market viability, crucial for investor confidence.

3. Funding Success:
Our efforts contributed to Hippoc securing $3.5 million in funding, a testament to the effectiveness of the strategy.

How You Do It?

You’ve got to approach these challenges using what we call a Minimum Viable Sprints (MVS) methodology—which I’ve already outlined above. Here’s our general process:

1. Foundational Research and Branding
    – Conduct market and competitor analysis
    – Develop initial messaging, taglines, and branding
    – Create ideal customer profiles (ICP) and go-to-market strategies

2. Broad Targeting
    – Launch initial campaigns on Meta and use interest targeting to see what people click on
    – Gather data on engagement and performance

3. Iterative Refinement
    – Analyze data to identify promising audience segments
    – Refine targeting based on initial results

4. Focused Targeting
    – Hone in on specific niches that show high engagement
    – Optimize ad copy and creative for these segments

5. Retargeting and Conversion Optimization
    – Implement retargeting campaigns for engaged users
    – Focus on converting interested leads into customers

Throughout this process, we maintain a data-driven approach, constantly testing and iterating to improve results.

1. Cost-Efficient Acquisition:
Our targeted approach led to a 66% decrease in Cost-Per-Lead (CPL), making customer acquisition much more sustainable.

2. Validated Market Potential:
The improved metrics provided concrete evidence of Hippoc’s market viability, crucial for investor confidence.

3. Funding Success:
Our efforts contributed to Hippoc securing $3.5 million in funding, a testament to the effectiveness of the strategy.

Lessons & Results

There are a few key things to learn here.

1. Data-driven marketing is a little bit slower at each step—building one level of that pyramid at a time feels slower than launching a fully-finished marketing “funnel” at once.

a. But overall, it gives you faster, more predictable performance on a campaign before you ramp up spend too much. This is very efficient and removes a lot of stress around big launches once you finally execute them. I’ve launched $100k / month campaigns at 5pm on a Wednesday and slept just fine that night because I already knew they were going to work.

2. Iterative testing is crucial for finding the most effective messaging and targeting. I am wrong 90% of the time when I create ads and ad copy, But I’m only wrong for $100. That’s not so bad.

3. Counter-intuitively, I recommend you start any marketing campaign with a paid approach. I used to run marketing for a company with an email list of 3 million people. A good subject line could earn $50k more on a weekly sales email than a bad one. How do we test that? We run MVS campaigns on Meta three days before the email went out, telling us which headlines were the most clickable.

Advice

For teams facing similar challenges:

1. Don’t rely solely on expensive platforms like LinkedIn; explore alternatives like Meta or Pinterest.

2. Invest in foundational branding and messaging, but avoid overspending on non-essential materials.

3. Use interactive workshops to define company beliefs and needs.

4. Focus on practical business characteristics when developing target personas.

5. Employ a methodical, data-driven approach to marketing efforts.

6. Be open to exploring new market segments if initial targeting proves ineffective.

Get scale-up growth strategies in your inbox.

An expert-led newsletter focused on helping marketing teams at growth/expansion stage companies overcome growth challenges, crush their competition, and stand out in the market.

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Di [email protected]

Emarketing World Admin, the driving force behind EmarketingWorld.online, is a seasoned expert in the field of digital marketing and e-commerce. With a wealth of experience and a passion for innovation, Emarketing World Admin has dedicated their career to helping businesses and entrepreneurs navigate the complexities of online marketing and achieve their digital goals. Through EmarketingWorld.online, they provide valuable insights, strategies, and tools to empower others in the ever-evolving world of digital marketing.### Early Life and Introduction to MarketingFrom an early age, Emarketing World Admin exhibited a keen interest in technology and communication. Growing up during the rise of the internet, they were fascinated by the potential of digital platforms to connect people and transform businesses. This early curiosity laid the groundwork for a career in digital marketing.During their formative years, Emarketing World Admin spent countless hours experimenting with website design, online advertising, and social media. These hands-on experiences sparked a deep passion for digital marketing and led them to pursue a career in the field. Their early projects ranged from managing small business websites to running grassroots online campaigns, providing a solid foundation for their future endeavors.### Education and Professional DevelopmentEmarketing World Admin’s educational background includes a combination of formal studies and continuous learning in the realm of digital marketing. They hold a degree in Marketing or a related field from a reputable institution, supplemented by specialized certifications in areas such as search engine optimization (SEO), pay-per-click (PPC) advertising, and social media marketing.In addition to their formal education, Emarketing World Admin has actively pursued ongoing professional development. They regularly attend industry conferences, webinars, and workshops to stay current with the latest trends, tools, and best practices in digital marketing. This commitment to continuous learning ensures that their insights and strategies are always aligned with the evolving digital landscape.### Professional Experience and AchievementsWith over a decade of experience in digital marketing, Emarketing World Admin has held various roles, including digital marketing strategist, SEO consultant, and e-commerce specialist. Their career includes working with a diverse range of clients, from startups to established corporations, across various industries.Throughout their career, Emarketing World Admin has achieved significant milestones, such as successfully managing high-profile digital campaigns, increasing online visibility for numerous brands, and driving substantial revenue growth through targeted marketing strategies. Their expertise encompasses a wide array of digital marketing disciplines, including content marketing, email marketing, data analytics, and conversion optimization.### The Birth of EmarketingWorld.onlineEmarketingWorld.online was created out of Emarketing World Admin’s desire to share their extensive knowledge and experience with a broader audience. The website was launched as a comprehensive resource for individuals and businesses looking to enhance their digital marketing efforts.The platform features a wide range of content, including in-depth articles, how-to guides, case studies, and expert interviews. Emarketing World Admin is dedicated to providing actionable insights and practical advice that users can implement to achieve their marketing goals. The website also offers tools and resources designed to help users analyze their marketing performance and optimize their strategies.### Philosophy and MissionThe core philosophy of EmarketingWorld.online revolves around the belief that effective digital marketing is both an art and a science. Emarketing World Admin emphasizes the importance of data-driven decision-making, creative problem-solving, and ongoing experimentation in achieving marketing success.The mission of EmarketingWorld.online is to empower businesses and individuals with the knowledge and tools they need to thrive in the digital world. By providing valuable resources, actionable strategies, and expert guidance, Emarketing World Admin aims to help users navigate the complexities of digital marketing and achieve measurable results.### Personal Touches and Community EngagementOne of the distinguishing features of EmarketingWorld.online is the personal touch that Emarketing World Admin brings to the content. Their unique perspective and hands-on experience are reflected in every article, guide, and resource. Emarketing World Admin is known for their ability to translate complex marketing concepts into practical, easy-to-understand advice.In addition to content creation, Emarketing World Admin actively engages with the EmarketingWorld.online community. Through social media interactions, email newsletters, and direct feedback from readers, Emarketing World Admin fosters a dynamic and supportive environment. They are committed to addressing user questions, offering personalized recommendations, and building a network of digital marketing professionals and enthusiasts.### Looking AheadAs EmarketingWorld.online continues to grow, Emarketing World Admin is excited about the future and the opportunity to expand the platform’s offerings. Future plans include introducing new content formats, such as video tutorials and interactive webinars, and collaborating with other industry experts to provide even more valuable insights.Emarketing World Admin remains dedicated to staying at the forefront of digital marketing innovation and providing users with the tools and knowledge they need to succeed. Whether you’re a seasoned marketer or just starting out, EmarketingWorld.online is here to support and guide you on your journey to digital marketing success.

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