Growth Marketing Budget: Expert Survey - Q1 2022

Optimizing a $25,000 Q1 2022 Marketing Budget

For an early-stage founder, a $25,000 investment presents several possibilities. The funds could be allocated towards tangible assets like office equipment, such as 50 Herman Miller Aeron chairs, or high-end technology like five MacBook Pros for the engineering team.

Alternatively, this capital could be strategically deployed to initiate marketing activities for the year 2022. As a new year approaches, it’s a crucial time to reassess and refine budgetary allocations.

To gain insights into maximizing marketing spend, we consulted a panel of experts identified through the TechCrunch Experts project. The central question posed was: “If limited to a $25,000 marketing budget for the first quarter of 2022, what would be your spending strategy?”

Leveraging Post-Holiday Momentum

Tracey Wallace, Director of Marketing at MarketerHire, highlighted the increased receptiveness to new solutions following the holiday season. Individuals often seek fresh tools and approaches in the new year.

She recommends capitalizing on this trend by conducting relevant industry research now. This research can then be repurposed into comprehensive website content and engaging social media campaigns after the new year begins.

A Multi-Channel Approach with Strategic Allocation

Jonathan Martinez of JM Strategy proposed a parallel campaign strategy across TikTok, Facebook, and Google. He suggests avoiding an all-in commitment to a single platform initially.

Instead, Martinez advises evaluating performance at the $12,500 spending threshold. At this point, resources should be concentrated on the channel demonstrating the most promising results.

Expert Contributors

The following professionals shared their expertise:

• Cam Sinclair, Director/Marketeer, Ammo
• Jonathan Metrick, Chief Growth Officer, Portage Ventures
• Tracey Wallace, Director of Marketing, MarketerHire
• Jonathan Martinez, Founder, JMStrategy
• Maya Moufarek, Founder, Marketing Cube
• Peep Laja, CEO, Wynter and Founder of CXL
• Lindsay Goldman, Strategic Advisor, MO Pros

Cam Sinclair, Director/Marketeer, Ammo

Should we be tasked with advising an early-stage startup on the optimal allocation of a $25,000 marketing budget for the first quarter of 2022, the following strategy would be our recommendation.

Budget Allocation:

• Growth marketing education via Demand Curve: $2,500.
• Essential brand design development: $5,000.
• Event participation and Public Relations efforts: $5,000.
• Social media advertising (LinkedIn, Facebook, Instagram): $5,000.
• Production of video content: $5,000.
• Professional copywriting services: $2,500.

Gaining a Growth Mindset

Numerous valuable resources and communities exist to assist founders in comprehending and implementing growth strategies. At Ammo, we’ve recently found Demand Curve particularly beneficial. They offer a course, a Slack community, and templates tailored for startups, and can even provide campaign reviews as you begin. Growth Tribe, based in Europe, is another recommended program for an introductory understanding of growth principles.

Developing a Scalable “Minimum Viable Brand”

Prioritize investment in branding and design from the outset, but avoid excessive expenditure. (The concept of a minimum viable brand was discussed in a recent TechCrunch article.) Your brand influences every aspect of your marketing, so a solid foundation is crucial for projecting a professional image to potential customers.

The Value of Professional Copywriting

The ability to condense intricate concepts into concise, impactful copy is a significant asset. Engaging a skilled copywriter to articulate your value proposition is consistently a worthwhile investment.

Networking Through Events and PR Initiatives

Prior to launching your company, you may have already established connections within your target industry. Leverage these relationships and seek assistance. It’s surprising how often founders neglect to consult their immediate network initially. Following this initial outreach, as Steve Blank suggests, it’s essential to “get out of the building” and engage in conversations with customers, while also actively participating in their community.

Often, industry events offer sponsorship or speaking opportunities where you can position yourself as an expert. If your technology addresses a significant problem for attendees, they will likely be eager to learn more.

Launch a Focused LinkedIn, Facebook, and Instagram Campaign

Facebook and Instagram continue to represent some of the most cost-effective marketing channels available. This approach not only allows you to test your brand messaging and content with real customers but can also facilitate audience building or email list growth on your preferred platform.

Create Video Content Informed by Customer Feedback

If your company or your competitors are experiencing initial traction, valuable feedback and insights can often be found in online reviews. Begin by examining social media channels and Google reviews, then expand to platforms like G2 and Capterra, especially if you are a SaaS business. Utilize this information to produce video content that resonates with your customers, using their own terminology.

Jonathan Metrick, Chief Growth Officer, Portage Ventures

Achieving product-market fit is paramount for startups and their marketing teams during initial growth phases. Prior to scaling, resources should be allocated to testing diverse marketing channels and value propositions.

The goal is to identify a viable consumer segment that can be reached efficiently. With constrained marketing funds, avoiding excessive spending on creative assets is crucial.

Focus should be directed towards lower-cost channels where your intended customer base is most active. The optimal channels will naturally depend on the specific demographic you are trying to reach.

To engage Gen Z and younger millennials, TikTok presents a strong opportunity. Its expanding user base, combined with a robust platform for identifying influencers, enables the creation of engaging and affordable “native creative” content.

When targeting older millennials or Generation X, podcasts and satellite radio should be considered. Similar to TikTok, these platforms offer dedicated listeners and a constant stream of new content.

Emerging, less-established programs typically offer lower advertising rates and more flexible, short-term contracts ideal for testing purposes. Prioritize securing host-read advertisements, as they are generally more cost-effective and yield better results than pre-produced branded spots.

For reaching baby boomers and older generations, direct mail remains a surprisingly effective channel. It provides a cost-efficient method for capturing attention in a world dominated by digital screens.

Leveraging Customer Advocacy

Regardless of company size, incentivizing customer referrals is a highly impactful strategy. Harnessing the enthusiasm of satisfied customers and rewarding them for their advocacy is a smart growth tactic.

At Portage Ventures, we emphasize to our portfolio companies that true product-market fit isn't achieved until customers are so pleased with a product that they proactively recommend it to others. Continuous testing is necessary if organic referrals aren't occurring.

Key Takeaways:

• Prioritize product-market fit before scaling marketing efforts.
• Focus on cost-effective channels aligned with your target audience.
• Incentivize customer referrals to amplify positive word-of-mouth.

Remember, consistent testing and adaptation are essential for optimizing marketing spend and achieving sustainable growth.

Tracey Wallace, Director of Marketing at MarketerHire, on Strategic Marketing Spend

With a $25,000 marketing budget for Q1 2022, a focused, single campaign launched in early January would be the most effective approach.

Following the holiday season, individuals are actively seeking new solutions, tools, and methodologies. Capitalize on this inclination by allocating funds to conduct research that is relevant, yet not directly central, to your core industry.

Subsequently, engage a writer to develop a comprehensive, long-form article incorporating all collected proprietary data. A launch video, potentially utilizing user-generated content, should then be created.

This video can be segmented into shorter clips for distribution across social media platforms, both through paid advertising and organic posting strategies.

Visual Data Representation is crucial. Develop charts and solicit quotes from respected industry professionals to provide context for the research findings.

Integrate these visuals and quotes into the article. Upon publication, notify the featured experts, requesting their assistance in sharing the content with their networks.

A coordinated Public Relations effort should follow. Consider engaging a freelance PR specialist. Unique data provides a compelling narrative for media outreach, moving beyond simple self-promotion.

Prepare your website's homepage to highlight the research. Incorporate key data points into the homepage copy and provide a direct link to the full article.

Capture visitor email addresses by offering a downloadable PDF of the research or providing updates on future studies. This allows for effective lead nurturing.

Throughout the remainder of the quarter, implement retargeting campaigns on paid social and search to re-engage website visitors. Continuously A/B test email sequences and webpage elements to optimize conversion rates.

Publish additional content that delves deeper into specific statistics and data uncovered during the initial research. Reinforce the key findings with compelling visuals on social media.

Share impactful, people-focused stories that demonstrate the practical implications of the data and its relevance to potential customers. This strategy leverages multiple marketing disciplines.

These include content marketing, social media marketing, social media advertising, PR, copywriting, email marketing, and growth marketing focused on conversion rate optimization (CRO).

By concentrating resources on a single, high-impact asset and fostering relationships with individuals interested in the data, costs can be minimized. This focused approach delivers significant results.

This initiative provides a wealth of content for company-wide utilization, simultaneously driving top-of-funnel traffic and establishing credibility within the industry. Q1 presents an ideal timeframe for this strategy.

Individuals are actively seeking information to guide their planning for the new year. Position your organization as a trusted source of insights and disseminate the research widely.

Jonathan Martinez, founder, JMStrategy

Given a marketing budget of $25,000 for the first quarter of 2022, my strategy would center around the dominant Facebook and Google advertising platforms. A smaller allocation would be reserved for exploring an emerging platform like TikTok.

Rather than committing fully to a single channel initially, a decision point would be established at the $12,500 mark. This allows for performance evaluation and focused investment in the most promising platform of the three.

The remaining budget would then be dedicated to maximizing the chosen channel’s potential through rapid and comprehensive testing.

Prioritizing Exhaustive Testing

This intensive testing process would encompass several key areas. These include campaign and ad set configurations, event optimization strategies, and diverse targeting approaches.

However, the most crucial element would be rigorous creative and copy testing. Continuous iteration and refinement are essential for optimal results.

While acknowledging the value of alternative growth strategies, such as influencer marketing, establishing a scalable channel with substantial inventory is paramount in the early stages.

Successfully unlocking a high-inventory channel quickly provides a strong foundation for future growth and efficient budget allocation.

Maya Moufarek, Founder of Marketing Cube

Startups in their initial phases, whether pre-revenue or recently launched, are typically focused on identifying or perfecting their product-market fit.

Considering this crucial stage, there are three primary marketing activities that should be prioritized.

Key Marketing Activities for Early-Stage Startups

Customer insights, both qualitative and quantitative, are paramount. This involves gathering data through prospective customer interviews and monitoring online customer behavior within your sales funnels – utilizing website tracking, surveys, and heatmap tools.

Successfully implementing this requires securing licenses and integrating appropriate tools like Google Analytics (GA), Google Surveys, and Hotjar, among others. Estimated cost: $5,000.

Cultivating a Dedicated Community

Building a community comprised of individuals who are interested in the problem your product addresses – regardless of whether they are currently aware of it – is incredibly valuable.

This community can serve as a valuable resource for beta testing, providing immediate feedback, and ultimately becoming your initial adopters and advocates, establishing social proof upon product launch. Estimated cost: $10,000.

Refining Messaging Through Rigorous Testing

Based on your understanding of the “jobs to be done” framework – defining the tasks customers seek to accomplish with your product – and your established messaging house, it’s essential to test different messaging and narratives.

Initiate testing campaigns, encompassing both advertisements and landing pages, to determine which messages resonate most effectively with your target audience and continuously optimize your approach based on the results. Estimated cost: $10,000.

Peep Laja, CEO of Wynter and the founder of CXL

For businesses targeting B2B clients with an average contract value of $50,000 or more, a specific strategy is highly effective.

Identifying Your Ideal Customer Base

Begin by compiling a comprehensive list of all companies that represent potential customers over the next five years. This forms the foundation for targeted outreach and engagement.

Building a Robust Media Presence

The core of this strategy involves establishing a strong media presence. Focus on becoming a leading information source for your target audience.

• Invest in content creation through a blog.
• Launch a podcast to share insights and expertise.
• Host monthly virtual events to foster community.
• Develop a YouTube channel for video content.
• Maintain active profiles on social media platforms like Twitter and LinkedIn.
• Create and nurture an online community.

Engaging Target Customers Directly

Actively involve the companies on your target list within your media ecosystem. This builds rapport and establishes thought leadership.

• Conduct interviews with key individuals at these companies.
• Feature them in your content and events.
• Invite them to speak at your virtual events.
• Encourage participation in your online community, and actively engage in theirs.

Content Repurposing for Maximum Impact

Allocate resources to repurpose content across various channels. This extends the reach and value of your efforts.

Transform podcast episodes and event recordings into blog posts and engaging social media clips.

Delivering Unique and Valuable Insights

Prioritize the creation and distribution of original, differentiated content. Invest in conducting original research studies to provide unique perspectives.

Leveraging Podcasts for Relationship Building

Instead of relying solely on outbound email, consider inviting prospects to be guests on your podcast. This provides a platform to showcase their expertise and company.

During the recording, prioritize building a genuine relationship. Aim for a high volume of recordings – up to eight episodes per day – to maximize opportunities.

The Long-Term Perspective

This approach is a long-term investment. When the time arrives to present a formal pitch, you’ll already have established a warm relationship with the prospect.

At the very least, they will be familiar with your brand and your value proposition, significantly increasing the likelihood of success.

Lindsay Goldman, Strategic Advisor at MO Pros

Given a $25,000 budget for the first quarter of 2022 to allocate for an early-stage startup, my primary investment would be in securing Arielle Jackson (Marketer-in-Residence at First Round Capital) as a consultant.

Her expertise would be focused on establishing the company’s core purpose, positioning, and personality.

Defining Core Elements

This foundational work is crucial for identifying the initial target customer, highlighting key differentiators, and articulating the overarching purpose of the business.

A clearly defined brand personality is also essential for team alignment and provides a basis for all future marketing efforts.

Initial Marketing Spend Allocation

Specifically, this groundwork will inform strategies across product marketing, creative and brand marketing, public relations and communications, and performance marketing.

Establishing these elements upfront ensures a cohesive and targeted approach to reaching the intended audience.

Brand Development and Online Presence

Following the definition of purpose, positioning, and personality, the remaining funds would be dedicated to engaging a designer.

The designer’s task would be to develop fundamental brand elements, such as a logo, while avoiding premature investments in merchandise.

Creating a Landing Page

A simple landing page would then be created to establish an initial public presence for the company, catering to both potential customers and investors.

This page will serve as a platform to showcase the newly defined purpose and ensure communication resonates with the target audience, reflecting the established brand personality.

Early SEO Implementation

Alongside the landing page development, basic SEO tactics would be implemented utilizing freely available tools.

This proactive approach will lay the foundation for future website growth and improved search engine visibility.

It’s important to prepare the site for scalability from the outset.