TL;DR
Paid customer acquisition tactics are methods of attracting and acquiring new customers through paid advertising and marketing efforts. Some common paid customer acquisition tactics include paid search advertising, social media advertising, influencer marketing, display advertising, content marketing, affiliate marketing, and email marketing. Each of these tactics can be effective when used properly, but can also go wrong if the target audience is incorrect, the budget is insufficient, the execution is poor, or the content quality is low. Companies such as Salesforce, HubSpot, Slack, and Notion have used these tactics effectively in the past, but it is important to carefully consider the goals and objectives of a campaign and to continuously monitor and optimize its performance.
What are Paid Customer Acquisition Tactics
Paid customer acquisition tactics are methods of promoting a service or product in order to attract paying customers. Some common examples include:
- Paid Search Advertising or Search Engine Marketing (Google Ads, Microsoft Ads)
- Social Media Advertising (ads & sponsored content on LinkedIn, TikTok, Meta, etc.)
- Content Marketing (sponsored blog posts, videos, infographics, etc.)
- Email Marketing (paid email campaigns to targeted lists)
- Display Advertising (banner ads on websites)
- Affiliate marketing (paying affiliates for each customer they refer)
- Influencer Marketing (paying influencers to promote your product)
The choice of tactics will depend on factors such as the target audience, the budget, and the goals of the acquisition campaign.
Search Engine Marketing
Search engine marketing involves placing ads on search engine results pages (SERPs). The ads appear when users search for specific keywords related to your product or service.
Paid search advertising is best suited for businesses that have a clear understanding of the keywords their target audience is searching for. This method is effective for reaching people who are actively searching for a solution to a specific problem or are in the consideration stage of the buying process.
Goals:
- Increase brand awareness among target audience
- Drive website traffic and online sales
- Generate leads for a specific product or service
Pitfalls:
- Targeting the wrong keywords
- Poor ad copy or design
- Bid management errors that lead to high costs and low conversion rates
- Insufficient landing pages or user experience
Social Media Advertising
Social media advertising involves placing ads on social media platforms such as Facebook, Instagram, and Twitter. The ads can be targeted to specific audiences based on demographics, interests, and behaviors.
Social media advertising is best suited for businesses that want to reach a large, specific audience based on demographics, interests, behaviors, and location. This method is effective for reaching people who are casually browsing or are in the awareness stage of the buying process.
Goals:
- Increase brand awareness and engagement
- Drive website traffic and online sales
- Promote a new product or service launch
Pitfalls:
- Targeting the wrong audience
- Insufficient budget
- Poor ad copy or design
- Placement of ads in the wrong location or at the wrong time
Content Marketing
Content marketing involves creating and sharing educational or entertaining content with the goal of attracting and retaining customers. Examples of content marketing include blog posts, videos, and infographics.
Content marketing is best suited for businesses that want to educate and build trust with their target audience. This method is effective for reaching people who are in the awareness or consideration stage of the buying process.
Goals:
- Educate target audience on a specific topic
- Build brand awareness and trust
- Generate leads and increase website traffic
Pitfalls:
- Insufficient audience research or understanding
- Poor content quality or relevance
- Lack of integration with other marketing channels
- Insufficient budget for distribution or promotion
Email Marketing
Email marketing involves sending targeted, promotional emails to a list of subscribers. The emails can be used to promote products, build brand awareness, and drive sales.
Email marketing is best suited for businesses that have a list of subscribers who have opted-in to receive communications from them. This method is effective for reaching people who have already shown interest in your brand and are in the consideration or decision stage of the buying process.
Goals:
- Drive website traffic and online sales
- Promote a specific product or service
- Retain and engage existing customers
- Generate leads for a specific product or service
Pitfalls:
- Poor list segmentation or targeting
- Insufficient relevance or personalization
- Poor email design or content quality
- Unsubscribe or spam complaints
Display Advertising
Display advertising involves placing banner ads on websites. The ads can be targeted to specific audiences based on their browsing behavior, demographics, and interests.
Display advertising is best suited for businesses that want to reach a large audience while they are browsing websites. This method is effective for reaching people who are in the awareness or consideration stage of the buying process.
Goals:
- Increase brand awareness and recognition
- Drive website traffic and online sales
- Promote a specific product or service
Pitfalls:
- Poor ad placement or design
- Insufficient budget
- Unoptimized landing pages
- Inconsistent messaging across multiple ads
Affiliate Marketing
Affiliate marketing involves paying affiliates for each customer they refer to your product or service. Affiliates promote your product through unique links or codes, and receive a commission for each sale made through their referral.
Affiliate marketing is best suited for businesses that want to reach a specific audience through referral marketing. This method is effective for reaching people who trust the opinions and recommendations of the affiliates promoting your product.
Goals:
- Increase website traffic and online sales
- Reach a specific target audience
- Launch a new product or service
Pitfalls:
- Partnering with the wrong affiliates
- Lack of transparency or accountability
- Poorly executed programs or campaigns
- Insufficient tracking or reporting
Influencer Marketing
Finally, this tactic involves paying influencers, such as bloggers, social media personalities, and celebrities, to promote your product or service. Influencer marketing can help increase brand awareness and credibility.
Influencer marketing is best suited for businesses that want to reach a specific audience through trusted sources. This method is effective for reaching people who follow influencers and are in the consideration or decision stage of the buying process.
Goals:
- Increase brand credibility and trust
- Drive website traffic and online sales
- Launch a new product or service
Pitfalls:
- Partnering with the wrong influencer
- Insufficient disclosure or authenticity
- Poorly executed campaigns or content
- Lack of audience engagement
2 Responses
While paid advertising is a valuable tool, it’s important for businesses to also focus on building strong customer relationships and word-of-mouth marketing. Also, neglecting organic growth could result in a short-sighted approach that ultimately hurts the company’s long-term prospects.
Thanks for your feedback. You make good points about the importance of organic growth, and I agree that it’s a very important for the long-term growth of any company. I’m hoping to put together article that dives into the organic side of acquisition. When that’s written, I’ll update this piece to tie them together.