Advertising and marketing is an important a part of a startup’s development, however for each firm the method is totally different. How do tech firms and startups strategy advertising, particularly in an financial downturn?
Progress and advertising have had a major impression on the startup growth in Africa. Whereas there are important keys to a startup’s success like entry to funding and product-market match, advertising can also be a robust space and will be seen in the best way that startups and firms throughout the continent closely spend money on advertising and promoting. We’ve seen startups launch campaigns with celebrities and sponsor main actuality exhibits like Large Brother in a bid to achieve a wider viewers. In 2021, startups like Kuda spent over $1 million on marketing efforts to deepen their market penetration.
Opeyemi Odusola led advertising in Nigeria for equipment firm, Oraimo. One of many issues he loved probably the most about advertising with Oraimo was the truth that he wasn’t constrained by budgets. At Oraimo, he had the freedom to experiment with varied concepts and collaborations, together with his favorite being the marketing campaign they created for the Freepods 3. It concerned collaborating with Grammy-award-winning producer Telz and different main artistes.
“We needed an advert that confirmed our customers that we listened to them and we understood them. Being an artiste myself, I additionally needed one thing that resonated with music-loving customers and we felt like bringing a few artistes collectively to speak about their relationship with music could be nice,” he shared.
For Ebuka who works in advertising for Piggyvest, an fascinating metric that he makes use of to guage the success of advert campaigns is how nicely he is ready to do with a small price range. Though the crew at Piggyvest has a bigger price range to execute with— not like his earlier office —, he shares that being attentive to budgets is a important a part of a marketing campaign’s success.
“After I discover myself going above the price range, it implies that I’ve to go and tweak one thing. Both your content material just isn’t adequate, your artistic route just isn’t the fitting one or your touchdown web page expertise is incomplete. There must be a cause why your advert just isn’t getting the specified outcomes and it’s as much as you to repair it,” Ebuka said.
Advertisements are past cash to Ebuka, who believes that whereas greater budgets can assist you execute greater concepts, they don’t all the time translate to higher outcomes. “It’s not nearly having cash, it’s very troublesome to get individuals’s consideration on-line lately and your advertisements must resonate together with your viewers to work,” he shared.
Navigating advertising in a downturn
Advertising and marketing Specialist Ebunoluwa Ade-Taiwo shares the identical sentiments with Ebuka on advertising going past cash. Ade-Taiwo, who works at Quidax— a startup that has needed to lay off 20% of its workforce as a result of downturn—, shares that there are quite a lot of methods to be artistic whenever you don’t have entry to a big price range. 2023 has seen a decline in startup funding throughout the continent, and a byproduct of that is that startups are being extra prudent with sources which prolong to advertising budgets.
“Corporations are utilising extra artistic, cost-effective methods to achieve potential customers and drive development. In contrast to earlier years once we may simply sponsor large occasions and signal celebrities as ambassadors; we now attempt to discover different choices like utilizing your workers as ambassadors and tasking them to assist promote the corporate. We additionally do a complete lot extra digital and content material advertising now, as these are cheaper alternate options.”
For fintechs, Ade-Taiwo believes that advertising is much more advanced as a result of belief issue. “That you must construct belief and credibility in case you’re asking individuals to belief you with their cash. In Nigeria right now, earlier than any person can half with as little as ₦5,000, they must belief you, and so you might want to pay additional consideration to the sort of advertisements you’re placing out and what your fame is,” he famous.
Regardless of not having a big price range, the Quidax crew is utilizing their social media to inform tales and one among Ade-Taiwo’s favorite advert campaigns was one for Worldwide Girls’s Day titled “How Qbabes are saving smarter.” For that marketing campaign, they made a compilation of tales from ladies on how they have been making smarter monetary choices. Nevertheless, she wished that they had a much bigger price range for the marketing campaign to do higher than it did.
Nigeria’s tech ecosystem has witnessed speedy development over time and advertising has been a basic a part of it. An enormous a part of advertising, nonetheless, is budgets and though greater budgets usually are not all the time markers of success for campaigns, firms with greater budgets sometimes have extra attain as we’ve seen within the case of firms like OPay and Kuda, amongst others. As funding for the Nigerian tech ecosystem falls — and consequently the advertising budgets, will the expansion within the coming years be slower, or will smaller firms discover a technique to make up for smaller budgets?