Startups typically need ‘activation-heavy’ strategies for advertising early in their development, but will benefit from diverting more of this expenditure to brand-led strategies as they grow.

Les Binet, head of effectiveness at adam&eveDDB, broke down the optimal adspend mix for developing enterprises at SXSW 2023.

Why it matters

Startups often believe that an innovative product can be enough to attract users on its own, and thus discount the need for advertising. But as brands grow, they typically reach a plateau in organic adoption, and need to use paid media to reach a wider audience and expand their customer base.

Takeaways...