moonchild
VIP Contributor
Paid marketing is another name for media buying where a new company or service use hard cash to advertise their business in other to gain users or customers.
1) Paid marketing it is not organic and any marketing channel that isn't organic has more downsides than upsides, any customer you gain from paid marketing you have to build up their experience you have to make sure they're enjoying your services, in a nutshell, you have no leverage.
2) Paid marketing gets saturated as the market tanks, what this means is paid marketing will stop yielding results if you exhaust all of the users or customers on a particular niche or if a competitor shows up with a bigger budget, you're at an disadvantage because instead of focusing on customer experience you'll be competing on keywords and other mundane things.
3) Paid marketing gets expensive over time, let's look at the companies that have over 1 billion active users example Facebook, Playstore and LinkedIn, if these companies relied on paid marketing do you know how much they'll spend to pull those numbers, let's say each user cost 10$ to acquire multiply 10 by even a million and you'll see why if doesn't make any sense.
Paid marketing can be a way to cold start a business but it isn't sustainable and shouldn't be seen as such, growth teams should devise ways to market their services and products without paying for it.
1) Paid marketing it is not organic and any marketing channel that isn't organic has more downsides than upsides, any customer you gain from paid marketing you have to build up their experience you have to make sure they're enjoying your services, in a nutshell, you have no leverage.
2) Paid marketing gets saturated as the market tanks, what this means is paid marketing will stop yielding results if you exhaust all of the users or customers on a particular niche or if a competitor shows up with a bigger budget, you're at an disadvantage because instead of focusing on customer experience you'll be competing on keywords and other mundane things.
3) Paid marketing gets expensive over time, let's look at the companies that have over 1 billion active users example Facebook, Playstore and LinkedIn, if these companies relied on paid marketing do you know how much they'll spend to pull those numbers, let's say each user cost 10$ to acquire multiply 10 by even a million and you'll see why if doesn't make any sense.
Paid marketing can be a way to cold start a business but it isn't sustainable and shouldn't be seen as such, growth teams should devise ways to market their services and products without paying for it.
