The Worst Way to Grow a Startup
Companies consistently think that they can raise money and grow exclusively using PR and paid advertising ad infinitum. The thought is, with a good product (in their eyes) and enough money in the bank, you can shove anything down consumers throats with mid-century modern Instagram ads and a few mentions from a fitness influencer.
The problem with that strategy is eventually, and usually quicker than most companies realize, acquisition costs creep higher and margins are squeezed as they try to scale. Once early adopters and core audience segments have been saturated, it takes more to cash to effectively reach the next up-market group of potential customers. That is also when competitors start to enter the auction and bid on the same ad inventory. Even in hyper-niche markets, this can cause negative ROI ad spend quickly.
CMOs of these companies would have consistently better outcomes...
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