I was talking to an investment banker friend the other day. He called me to ask about channel expansion for a company he’s working with. They’ve had a ton of success with the channels they have currently, but they’re looking to expand into Tiktok, Pinterest, SEO etc. he wanted to get my thoughts.
Then he dropped the bomb that this ecom brand was getting a 13x ROAS on Google Search Ads. *Shocked pikachu face*
At this point I started going manic, that ROAS is insane. HOW?
I asked him if they had exploited that arbitrage as far as it could go. He said no.
I told him literally put as much money into that channel until you see diminishing returns. Go to that ATM until it quits printing.
This is a perfect example of FOMO marketing. FOMO marketing is when we make marketing decisions based on what we could be doing rather than what is working.
I think about marketing as a portfolio, where 80% of resources is spent on what is working and 20% on an exploration of new initiatives.
We’re making bets for the short term, and bets for the long term.
A lot of marketing teams get shiny object syndrome and which distracts them from why they exist: to increase revenue.
If you have a winning horse, bet on that winning horse until it stops winning.
And I’m not saying don’t test new things. But allocated a small percentage of resources.
Winning horses I’m seeing rn for b2b brands:
- Cold email
- Customer match lists into ad channels
- Remarketing product demos
- Podcasts
- Repurposing podcast content
- Educational content to linkedin pages
To conclude, do more of what is working and less of what isn’t.
