Digital Marketing and Crowd Investing
While at the Crowd Invest Summit in Los Angeles back in September the event confirmed what I had suspected for a very long time. Just like rewards-based crowdfunding required a compelling strategic marketing and PR plan the same would be required in the world of Title III Crowd Investing. Our panel was very lively, and the audience was very excited and engaged. You need to have a strategy for putting your funding raise in front of enough people who are willing to invest in you so that you reach your goal. Otherwise, the whole process is a waste of time. And with only a few exceptions, the equity crowdfunding platforms don’t offer a lot of support for campaign marketing. And that can be frustrating.
An effective Facebook ad campaign allows a company to efficiently target likely investors based on Facebook users’ location, demographics, and interests. Facebook is genuinely 21st-century digital marketing. Facebook is the number one platform in social media marketing where you can target a customized audience so that you can reduce blasting out a message to who-knows-where and to whom. Facebook Ads minimize the waste of advertising funds. Facebook is like picking up the phone and selling directly to someone. During your pre-launch, you can create an ad and test multiple audiences. Whichever one converts the best and is most engaged lead with. Facebook Ads provide fantastic targeting and analytic data to along with the ability to create lookalike audiences and retargeting.
Use Twitter ads if you have a Twitter handle, you have a great marketing tool for your product. Companies use Twitter to expand their community. Though this is a fast-moving source, it can get you a lot of exposure. Twitter is also an excellent tool for influencer/blogger outreach.
LinkedIn ads work best in a B2B context and can be used to drive people to a lead generation page for the right crowdfunding offerings. Precise targeting of LinkedIn members with investment expertise in their member profiles, plus targeting to members of LinkedIn Groups for venture capital and private equity, helped Spotlight Ads and Sponsored Updates reach investors.
Search Engine Marketing
The most basic form of SEM involves paying for specific search terms and having Google drive traffic to your crowdfunding campaign based on what you paid for. With SEM, we know somebody is a potential investor based on their search terms, so you are directly reaching out to people who have already identified themselves as someone looking to make a purchase or investment.
Email marketing may not be as sexy as newer marketing tactics such as social media and video, but it can still be a huge factor in driving a successful equity crowdfunding offering. There are plenty of digital platforms available to deliver your message, but email marketing continues to offer one of the best opportunities to build relationships and drive sales. Early momentum is crucial in any crowdfunding campaign, and creating your email list to engage people in what you are doing before asking them to invest or will put you at a significant advantage on launch day.
Digital marketing is an essential part of every equity crowd investing offering, just as it has been for rewards-based crowdfunding. Working with the right professionals with the correct strategy and knowing who to target is the key to success. Digital marketing is a process that takes time. Most say it takes a potential investor seeing an average of five ads before they decide to invest. Converting digital advertising is a process, so start early in the crowdfunding campaign.