I co-wrote an article with @mrsharma.
$0.40 of every VC dollar raised goes straight to user acquisition. As a result, companies that used to focus on industries are now focusing on audiences.
Enjoy!
perell.com/blog/customer-…
$0.40 of every VC dollar raised goes straight to user acquisition. As a result, companies that used to focus on industries are now focusing on audiences.
Enjoy!
perell.com/blog/customer-…
Digitally native brands are fighting for the same customers on the same platforms (such as Facebook and Google).
As they fight for limited advertising space, marketing costs are soaring. As companies grow, so do costs of acquiring each additional customer.
As they fight for limited advertising space, marketing costs are soaring. As companies grow, so do costs of acquiring each additional customer.
The DNVB space wreaks of high customer acquisition costs and smells like a bubble.
This quote from @chamath says it all...
This quote from @chamath says it all...
Competitive bids for the same inventory, addressing the same audience, drive up demand for the same real estate within a feed or a story.
This is why Facebook ad prices are skyrocketing.
This is why Facebook ad prices are skyrocketing.
Advertising on Facebook has become 70% more expensive between 2017 and 2018, while ad spend on Facebook grew 40% during Q2 2018.
In the words of Warren Buffett, Facebook ads are like a parade.
In the words of Warren Buffett, Facebook ads are like a parade.
We're shifting from a supply-driven world to a demand driven world.
Companies who cater to the needs of passionate customers will benefit from lowered customer acquisition costs and higher lifetime value (LTV), reduced churn and increased loyalty.
Companies who cater to the needs of passionate customers will benefit from lowered customer acquisition costs and higher lifetime value (LTV), reduced churn and increased loyalty.
This post was inspired by this thread by @mrsharma.
When it comes to influencer partnerships and social media marketing, Nik is the best in the game.
💯
When it comes to influencer partnerships and social media marketing, Nik is the best in the game.
💯
Andrew Chen (@andrewchen) calls this The Paid Marketing Local Max.
"Addiction to paid marketing can get you into a local maximum. As spend scales, it always gets more expensive and harder to track – never less. Paid Marketing is tricky to grow, at scale, as the primary channel."
"Addiction to paid marketing can get you into a local maximum. As spend scales, it always gets more expensive and harder to track – never less. Paid Marketing is tricky to grow, at scale, as the primary channel."
From @MorganHousel:
"Marketing is increasingly cheap. Trust is increasingly expensive.
Attracting eyeballs no longer sets you apart. Building trust among those who have their eyes on you, does. Getting people’s attention is no longer a skill. Keeping people’s attention is."
💯
"Marketing is increasingly cheap. Trust is increasingly expensive.
Attracting eyeballs no longer sets you apart. Building trust among those who have their eyes on you, does. Getting people’s attention is no longer a skill. Keeping people’s attention is."
💯
Reminds me of a quote from @jasonwstein: "Media companies used to sell reach. Now they sell a point of view."
So simple, so powerful.
So simple, so powerful.
“If your customer acquisition is predicated on paid acquisition, that makes you a sitting suck for incumbents who have larger budgets.”
- Tim Ferriss (@tferriss)
💯
- Tim Ferriss (@tferriss)
💯
