The Do’s and Don’ts of Digital Marketing for Your Crowdfunding Campaign
As businesses continue to grow ever more dependent on digital technology, online crowdfunding campaigns have steadily gained popularity. In 2018, equity crowdfunding campaigns raised over $74 million, and by 2019, that number grew to $100 million. And on top of this growth, experts expect the crowdfunding market to reach $200 billion in size by 2025, at a compound annual growth rate of 15%. With Digital Marketing Crowdfunding Campaign that growth can accelerate exponentially.
Clearly, crowdfunding has become a viable way for businesses to raise money. However, the success of any crowdfunding campaign depends on a good marketing strategy. And since most such campaigns operate online, digital marketing is your best bet.
The following do’s and don’ts will help you figure out how to deliver effective digital marketing crowdfunding campaign strategies for your crowdfunding campaign.
Don’t: Try to Appeal to Everyone
A broader audience means having a bigger pool of potential funders, right? Wrong! If you try to appeal to everyone through your marketing efforts, your message is likely to end up unfocused and vague. And when marketing feels too general, consumers are typically less compelled to back your project.
Do: Establish A Target Market
You stand a better chance of securing loyal backers when you tailor your content to a specific type of investor. Determine whose needs your product is designed to meet. Right off the bat, you can use social media and Google Analytics to research who’s viewing your campaign. From there, you can begin to build a customer profile, and focus your marketing efforts on the wants, needs, and interests of consumers who meet that profile.
Don’t: Put Quantity Over Quality
Establishing a steady stream of content can put your project’s name on the map and raise your chances of securing investor funding. However, it’s inadvisable to regurgitate low-quality content for the sake of visibility. Spam marketing campaigns will only waste your audience’s time and dissuade them from investing. Ultimately, when you fire an endless barrage of low-quality content, all you’re proving is that you lack the commitment to give your audiences any real or unique value.
Do: Consult Professionals
Not all business owners have the time, energy, or creativity to create successful marketing campaigns. It’s in your best interest to hire digital marketing professionals. Budget savvy and creative, digital marketing professionals understand how to properly utilize online marketing strategies, such as SEO, email marketing, social media, and pay-per-click advertising. Some professionals even specialize in marketing for crowdfunding. Crowdfunding Buzz can boost your campaign’s visibility through influencer marketing, PR stories, and TikTok and YouTube promotions.
Don’t: Advertise Unrealistic Expectations
When advertising ideas, it can be tempting to exaggerate promises to build hype. Or, sometimes, without intending to, you might build idealistic expectations of your own product without taking proper research into account. Unfortunately, though hype can attract backers, failing to deliver your advertised promises will likely have harsh consequences. Indeed, by this point there have been enough issues that there is advice for crowdfunders regarding how to go about assessing opportunities and raising the issue when expectations aren’t met (even going so far as to suggest formal complaints with the FTC). To avoid seeing any of these issues materialize, and having your company’s reputation damaged, make an effort to set realistic goals, and communicate progress clearly to your backers.
Do: Leverage Video Content
Video is one of the best mediums for advertising new products. It’s also one of the most popular. On Instagram, for instance –– a platform increasingly recognized for its immense potential in marketing –– video posts get the most engagement out of all content types. Furthermore, and more broadly speaking, it’s estimated that 72% of customers prefer to learn about products and services through video. Thus, by leveraging video content, you’re giving consumers what they want –– as well as providing a clear and realistic picture of what your product is and what it can do. Just be sure to keep the videos fairly short and snappy –– the modern attention span only stretches so far!
Ultimately, crowdfunding campaigns can only succeed when you effectively advertise your content to backers. Certain things –– like setting unrealistic expectations and spamming content –– can work counter to this goal. But when you establish a target market, consult professionals, and create strong video content, you’ll be on your way to increasing your campaign’s visibility and boosting investments. When it comes to Digital Marketing Crowdfunding Campaign results, you can raise more money – perhaps much more – if executed intelligently.
We warmly thank guest blogger Rachel Jamila for her spot-on contribution.