Startups experiencing early-to-mid growth often demonstrate effective startup marketing strategies, particularly in their returns from paid media. These businesses, now with resources to deploy, face a crucial decision: building an in-house marketing team or opting for a marketing agency to scale their efforts.
As the CEO of a marketing agency specializing in startup advertising techniques and startup growth marketing, I acknowledge my bias towards recommending agencies for startups at this stage. However, my experience has shown that startups frequently over-invest in less impactful areas and under-invest in critical marketing functions that truly drive growth.
This article delves into key elements of developing a marketing function during this pivotal stage. We'll explore essential marketing competencies, address common early-stage marketing mistakes, and weigh the pros and cons of in-house versus agency marketing.
Must-Have Competencies for Early-Stage Startup Marketing
Digital marketing in startups, regardless of their stage, often focuses on channels like Google, Meta, and LinkedIn (especially for B2B). These platforms account for a significant portion of digital advertising spend, offering vast audiences and engagement opportunities at every sales funnel stage. For startups, these channels are vital focal points.
Required competencies to maximize these channels include:
- Expertise in bidding and audience targeting on each platform.
- Scalable creative production and testing.
- Proficiency in tracking, tagging, and marketing technologies (like GA4, CRM, and email platforms).
- Established contacts within these channels for insights and access to beta features.
- A holistic view of the budget, incorporating attribution modeling and media mix analysis.
Even if your startup's in-house resources cover these aspects, there's a likelihood of inefficient spending. Advanced analyses focusing on incrementality and marginal returns can be game-changers, particularly in 2023, where funding rounds have become more challenging.
Reducing Mistakes in Early-Stage Growth Marketing
The key at this growth stage is finding the balance between caution and rapid movement. Common pitfalls include misaligned spending on unproven channels or audiences, neglecting current customers in the pursuit of new ones, and committing resources to lengthy, unnecessary engagements.
Early-Stage Growth Marketing: In-House vs. Agency
If your team already possesses these competencies, empower them to drive your company's marketing forward without outside help. However, if your team is overstretched or lacks certain skills, consider bringing in an agency for a fresh, objective perspective on achieving your business goals.
Look for agencies with a strong focus on customer retention and experience in scaling marketing efficiently within your sector. A good agency should be able to demonstrate how they can add value without long-term financial commitments.
What's Next for Your Startup's Marketing
Growth at this stage requires a dynamic mix of action, analysis, and planning. Whether through external help or internal expertise, having a resource to plan beyond the immediate future is crucial for sustained growth.
While the series will later address marketing for established brands, it's important to note that maintaining success at the top can be as challenging as achieving it. Startups must carefully build their marketing functions with a strategic balance of in-house and external expertise to navigate these early growth stages effectively.
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