*Brands outlive products. History has proven that a million times over. Photo by Pixabay.*

According to Crunchbase, in recent months, Series B funding to U.S. startups has fallen sharply. So far in 2023, investment is on track to come in at the lowest quarterly level in more than three years. So if you’ve got it, congratulations. Capitalize on it. With most Series B startups valued between $30 and $60 million, you have to start acting like a brand and not the creator of a product.

History has proven that brands outlive products. Always. Name almost any company you like and they no longer rely solely on the product they started with. (Yes, Coke. But you’re not Coke.) Whether you hire a digital marketing agency or start a project with a creative agency or hire a freelancer, here are a few reasons to go all-in on marketing:

Rising Competition and Market Differentiation:

Your product may be better than the competitors, but if competitors are out-spending you in terms of marketing dollars, no one’s going to care. People don’t always know what is better. What matters is what is perceived to be better. And name recognition is always perceived to be better. When you invest in marketing, it's your chance to create a brand identity, and your brand is a product unto itself. Every chief marketing officer, digital ad agency or successful brand manager will tell you the same thing. Products come and go, brands live on.

Scaling Customer Acquisition:

You've clearly already got some traction in the acquisition game. Use those customer assets to your advantage. Well-targeted ad campaigns using look-alike audience targeting will build awareness within a market segment. It's not just about making sales; it's about expanding your reach and becoming a force to be reckoned with. And your current customer profiles can help. Execute a digital marketing campaign combined with a targeted awareness campaign in a specific market and you will increase awareness if you create messaging that doesn’t bore people to tears.

Investor Confidence and Future Funding:

The people that gave you the Series B money want to see you out in the market. When they see you pouring resources into marketing, it shows them you're serious about growth and you know how to scale. Marketing builds your reputation, boosts brand perception, and gives you the upper hand when it comes to securing future funding rounds. When they hear the buzz about your videos, ads, and billboards, they feel good about their investment. As an ad agency that specializes in Series B startups and tech companies, we’ve done a lot of billboards in the 101 corridor between San Francisco and San Jose combined with targeted campaigns reaching I.T. Decision Makers and their associates. Make sure the message is engaging and you will succeed.

Expanding into New Markets:

Marketing is the best way to expand into new markets. Adapt what has worked and support your sales staff. Potential new customers are far more likely to take a meeting or consider your product if they’ve heard of the brand. Especially in the B2B space. And by tailoring your messaging, promotions, and initiatives to resonate with local audiences, you'll increase adoption rates in previously uncharted territories.

Customer Retention and Engagement:

Attracting new customers is crucial. But let's not forget the ones you already have. You’re a new company, which means you need to work hard to establish brand loyalty. Happy customers become your biggest cheerleaders, spreading the word about your awesomeness and bringing in new customers through the power of word-of-mouth. Market to them. Spend money to make them feel good about the brand so they tell their friends.

The message matters:

With Series B funding, you’re no longer in the “struggling startup” phase. Fear of failure should be much, much lower. It’s time to take risks with your messaging to get attention. We remind our clients at Division of Labor, when you’re creating awareness-building advertising and lead-generation campaigns, don’t worry if someone writes you an email or doesn’t like your video. Who cares what your friend’s mom says? Get attention. Make it emotional, honest, self-deprecating, edgy, ballsy, funny. Swing big. Now that you have a few bucks to spend, just make sure no one can ignore it.

Cover Photo: Photo by Pixabay: https://www.pexels.com/photo/drug-store-drink-coca-cola-signage-on-gray-wooden-wall-210126/

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The Small Agency Blog is produced by Division of Labor; a top San Francisco ad agency and digital marketing firm that’s been named Small Agency of the Year twice by Ad Age. The award-winning creative shop services clients on a retainer or project basis. They also offer brand consulting services and hourly engagements for startups and smaller brands. Click here for a free consultation.

*The sky is not falling. Why slashing marketing budgets when a recession looms is a tactical mistake.*

The most important rule of marketing is not to follow the herd. Never ever follow the pack. So why do so many companies instinctively do the exact same thing when the economy slows down? Panic, slash marketing, panic some more, then realize you’re either in business or you’re out of business. So stay in business. Because in actuality, an often overlooked opportunity arises during these challenging periods: doubling down on your advertising spend. While it may sound counterintuitive, allocating more resources to marketing efforts can actually yield significant benefits and propel your business forward. Here’s how.

Capitalizing on Reduced Competition:

During an economic downtown, so many companies slash their marketing budgets or pull out of the market altogether. This creates a huge opportunity for proactive companies to stand out and eat share. By increasing your marketing budget, or at least holding steady, you can capture a larger share of voice in the market, allowing you to establish a stronger brand presence. With reduced noise from competitors, your brand messaging has a better chance of resonating. And as we’ll discuss later, that share of mind space does not dissipate.

Maintaining and Expanding Customer Base:

As inflation rises, consumer behavior undergoes significant changes. That’s a nice way of putting it. We’re all a bit nervous. But nervousness should not dictate business decisions. Yes, people become more cautious with their spending, and brand loyalty may falter as individuals seek value and reassurance. But by increasing marketing efforts, you can maintain a strong connection with your existing customers, reminding them of your value proposition and reinforcing their loyalty. Moreover, well-executed marketing campaigns (and there should be no other kind) can attract new customers who are actively seeking alternative solutions due to shifts in the marketplace.

Leveraging Cost-Effective Channels:

Crappy times often present an opportunity to leverage more cost-effective marketing channels. Traditional advertising rates may decline, reps are better able to negotiate, and digital advertising platforms offer competitive pricing. And everyone is gonna flock to organic social which will make things even more glutted. By strategically investing in bigger channels, you can maximize your marketing dollars, reaching more potential customers at a fraction of the cost compared to boom times.

Exploiting Emerging Opportunities:

Bear markets often bring about changes in consumer needs and behaviors. IE, we all freak the f*ck out a little. As a result, new market segments may emerge. It’s a good time to do market research, identify evolving trends, and tailor your marketing campaigns to capitalize on the shifting landscape. Being agile and responsive during a downturn can help your business not only survive but also thrive in the long run.

Once Top of Mind, Always Top of Mind

This is especially important for startups. Plowing ahead is crucial when your competitors are panicking. Competitors will instinctively “pull back”, “ride it out” and “wait for the opportunity” and you’ll have dominated the market with a massive campaign, increased market share, and set yourself up for a huge windfall when things turn. And the space you’ve carved out in everyone’s mind will not disappear. When everyone else zigs, you zag. Bold, fearless companies act that way and they are rewarded for it.

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Why Series B Startups Should Spend Money on Marketing, Especially Now

Recession is coming? Five reasons not to slash marketing budgets