Why Marketing Priorities Need to Shift for Long-Term Success

Name: Why Marketing Priorities Need to Shift for Long-Term Success
Uploaded: 2024-05-10T07:04:43+00:00
Duration: 57 s
Channel: Jason M. Lemkin
Description: Jason M. Lemkin says startups are cutting marketing too aggressively to hit quarterly numbers, focusing only on deals about to close. This depletes the…

10 May 2024 · 1 min

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Jason M. Lemkin says startups are cutting marketing too aggressively to hit quarterly numbers, focusing only on deals about to close. This depletes the pipeline for later in the year, and when the market improves, companies will have no prospects left to sell to.

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Look, it's exactly what— this is one thing where Twitter has it right, okay? Which is that marketing has become myopic. Marketing is focused on this quarter, right? What can I spend to get more revenue this quarter? I'm under pressure from my board. My revenues are down in some cases and my burn rate has to last longer. So the CEO is only approving these marketing expenses that create revenue immediately. And they do exist out there, right? But the problem is it's such a small part of marketing that pays off. The only part that really pays off is like funnel assist, like taking someone that's almost ready to buy and then they hear about, they hear about someone on 20VC and that magic moment gets them to buy the next week, like, but nothing else. And so we're cutting too much in marketing. And I'll tell you what I think we should be doing. We're cutting too much and it's going to hurt everybody. Not this week or even this quarter, but it's going to hurt everyone. Everyone's going to not going to have enough pipeline at the end of the year when I think things will be better. I think things will be better for startups at the end of this year.