Solved: Optimal Ad Spend for New Startup App Launch?

Hi there,

Thanks for reaching out and giving me the opportunity to offer some initial thoughts and guidance on your ad campaigns. I'm happy to give you my honest opinion after reviewing your marketing strategy and ad accounts. It can be a bit tricky to get things off the ground for a new startup, especially when you're bootstrapped, so let's see if we can point you in the right direction.

We'll need to look at proving the concept first...

Firstly, I'd say it's crucial to ensure your app is genuinely solving a problem and that people are actually willing to use it long-term. Loads of startups make the mistake of pouring money into marketing before they've properly validated their idea, a bit like chucking cash down the drain. I remember one client who had a great idea for a B2B SaaS product, they spent a fortune on ads, got loads of sign-ups, but their user retention was terrible. They realised their onboarding process was rubbish, and the app didn't really deliver on its promises. Moral of the story: focus on proving your concept and fixing any initial glitches before you ramp up your ad spend.

A good way to gauge interest early on is to launch a waitlist with a landing page that highlights the app's key features. You could try offering some kind of incentive for signing up, like early access or a discount. Promote the waitlist on platforms like BetaList, Product Hunt, and Indie Hackers. This'll give you a sense of whether there's real demand for your app and help you gather valuable feedback before you officially launch.

Also, don't underestimate the power of word-of-mouth. Get your friends and family to try out the app and give you their honest opinions. Ask them to share it with their networks. If people genuinely love your app, they'll naturally tell others about it, which is far more effective than any paid advertising.

I'd say you should think about the Sales Process...

What do you want people to do once they visit your site? Do you want them to sign up for a free trial? Schedule a demo? Contact you for a consultation? Your website should clearly guide visitors towards taking that first step. Make sure your call to action is prominent and compelling. And make sure your website is easy to navigate and loads quickly. Slow websites can kill your conversion rates.

From there, you'll need to think about what makes a lead qualified. I reckon, the first step is either filling out a lead form or scheduling an intro meeting or consultation. You could also offer a free audit or strategy review. Depending on what the first step is that people need to take, this is what your website's start page should lead people to. Optimise this page with sales copy, make it really persuasive to take the first step. Some professional copy could really go a long way.

Think about where people typically drop off in the sales process, and optimise each stage to improve conversion rates. E.g. if you get a load of people visiting your landing page but not signing up, then you need to look at the copy and design of your landing page. If you get a load of people signing up for a free trial but not upgrading to a paid plan, then you need to improve your onboarding process and make sure people are getting value from the app.

You probably should review ad platform choice...

In terms of ad spend, it really depends on your budget and your goals. But as a starting point, I'd say aim for at least £1,000-£2,000 per month. Of course, this depends on your niche and the competition. If you're in a highly competitive market, you may need to spend more to get noticed. But if you're in a niche market with less competition, you may be able to get away with spending less.

Consider which ad platforms are most relevant to your target audience. You mentioned you're using Google Ads and TikTok, but are these the right platforms for your app? Google Ads can be effective for reaching people who are actively searching for solutions like yours. TikTok can be great for reaching a younger audience with engaging video content. But it's important to make sure your messaging is aligned with what people are looking for on each platform. I can't tell you how many times I've seen companies that chuck the same ad up everywhere without thinking if it's relevant to the user.

If your target audience is actively searching for a solution, then Google Search ads might be the best option. Do some keyword research to find keywords related to what your ideal customer persona might be searching for when they need your services. E.g. you could target keywords like "AI implementation service", "AI agency near me", "software agency near me", "AI developer near me". If they aren't, try social media or display ads. For B2B, LinkedIn is usually the main option as you'll have narrow B2B targeting. Meta has limited B2B targeting. Reddit might also work with the right subreddits. Main options here are lead form ads, which will be lower cost per lead but will require more effort to turn them into customers, compared to pointing the ads to a landing page (higher cost per lead but much better qualified).

You'll need to think about the Ad Creatives...

Experiment with different ad formats and creatives. Test different headlines, images, and video to see what resonates best with your audience. Use A/B testing to compare different versions of your ads and identify the most effective elements. We've had several SaaS clients see really good results with UGC videos - lots of angles to test there as well.

Don't be afraid to get creative and think outside the box. The more unique and engaging your ads are, the more likely they are to capture people's attention. Look to your competitors, what are they doing? Maybe you'll see something you can implement into your strategy. Just don't nick it, make it your own.

And for the love of god, make sure your ads are properly targeted. There's no point showing your ads to people who aren't interested in your product. Use the targeting options available on each platform to narrow down your audience and reach the people who are most likely to convert. This is so important, especially if you have a narrow niche.

I've detailed my main recommendations for you below:

Right now, you might be thinking "that's great, but how do I know what's the best direction for my startup?". That's where a specialist agency can really help to refine things. Scaling a start up is hard and it might make sense to consider getting some expert help. If you think this is something you'd want to do, we'd be happy to book you in for a free consultation.

Regards,
Team @ Lukas Holschuh