Equity crowdfunding has become a popular way for startups and growing companies to raise capital. It allows businesses to reach a broad audience of investors through online platforms. However, to succeed in an equity crowdfunding campaign, an effective marketing strategy is crucial. To ensure a campaign’s success, many companies turn to MediaShares to either handle the marketing or supervise the marketing by other agencies. Choosing the right marketing partner requires careful evaluation. This article outlines the key factors to consider when assessing an equity crowdfunding marketing company.

Analyzing Google Analytics for Ad Spend Results

There is really only one way to evaluate a marketing company and that is by examining their Google Analytics to track and optimize ad spend. The company should be able to provide data showing the effectiveness of their advertising campaigns. The metrics to review include:

• Traffic Sources: Assess where the potential investor traffic is coming from. Is it organic, direct, referral, or paid? A good marketing company should demonstrate a healthy mix of traffic sources.
• Conversion Rates: Look at how many of the visitors convert into actual investors. High conversion rates indicate effective targeting and persuasive marketing strategies.
• Bounce Rate: A high bounce rate might suggest that the marketing content isn’t resonating with the audience, or the landing page experience is not up to par.
• Cost per Acquisition (CPA): This measures how much it costs to acquire a new investor through advertising. A lower CPA means a more cost-effective campaign.
• Return on Ad Spend (ROAS): The most crucial metric, ROAS shows how much revenue is generated for every dollar spent on ads. A higher ROAS indicates a successful marketing strategy.

By evaluating these metrics, you can gauge how well the marketing company manages ad spend and whether their efforts translate into real investments.

Reviewing Marketing Content Produced by the Company

At MediaShares, we believe effective marketing content is the backbone of any successful crowdfunding campaign. The content is what conveys your message, so the marketing company must be very effective at creating content that not only tells the company’s story well, but it should also captivate and entertain. MediaShares has won five Telly awards for TV commercials that we produced and we have shown this to translate well to investor campaigns. Ask your marketing company to provide samples of the marketing content they have produced for previous campaigns, including:

• Ad Creatives: Review the visual and textual elements used in their ads. Are they engaging, professional, and tailored to the target audience?
• Landing Pages: The landing page is where the investment transaction takes place. A well-designed landing page is crucial for converting visitors into investors. Evaluate their previous landing pages for clarity, compelling messaging, and most importantly ease of use to accept investments. MediaShares works with talented web designers that can build great landing pages that easily complete investments.
• Social Media Campaigns: Social media is a powerful tool for crowdfunding. Analyze a marketers approach to social media, including posts, engagement strategies, and influencer partnerships.

High-quality, persuasive marketing content is key to attracting and converting potential investors. Ensure the marketing company you are considering has a track record of producing content that drives results. Some large clients, before they will commit to an agency’s campaign, will ask for a potential agency to submit sample creative material.

Requesting Evidence of Previous Successes

A reputable equity crowdfunding marketing company should have a portfolio of past successes. When evaluating a potential partner, ask for case studies or examples of previous campaigns they have managed. Specifically, inquire about:

• Campaign Outcomes: What was the total amount raised in previous campaigns? Did they exceed their funding goals? Warning: Many companies can show you some great successes, but you need a way of determining what percentages of their raises were unsatisfactory.
• Fields and Industries: Look for a marketing company with experience in your specific industry. Success in one sector does not always translate to another, so it’s important they understand the nuances of your market or can demonstrate successes in a wide variety of businesses.
• Testimonials and Reviews: Seek out testimonials from previous clients. Positive reviews can provide insight into the company’s reliability, professionalism, and effectiveness.

Understanding the company’s track record in your field can give you confidence in their ability to manage your campaign successfully.

Measuring Return on Ad Spend (ROAS)

A critical aspect of evaluating a marketing company is assessing their ability to deliver a high return on ad spend (ROAS). This metric indicates how much revenue is generated for every dollar spent on advertising. To measure ROAS effectively:

• Track Investment Flow: The marketing company should provide detailed reports on how their advertising efforts directly resulted in investments.
• Compare with Industry Benchmarks: Compare their ROAS with industry standards. While the desired ROAS can vary depending on the campaign stage and industry, a marketing company should demonstrate that their strategies lead to a significant return.
• Ongoing Testing & Optimization: The Company should show a willingness to continuously test and optimize campaigns for better ROAS. Ask how they adjust their strategies in response to real-time data to maximize investment outcomes.

A focus on ROAS ensures that the marketing company is not just spending your budget but is investing it in ways that yield measurable returns.

Assessing the Company’s Longevity and Reputation

The length of time a marketing company has been in business can be an indicator of its stability and expertise. While newer companies can bring fresh perspectives, those with a longer track record often have more experience navigating the complexities of equity crowdfunding. Consider:

• Years in Business: A company with several years of experience is more likely to have honed its strategies and developed a deep understanding of the market.
• Industry Reputation: Research the company’s reputation in the crowdfunding space. Are they known for their expertise and reliability?
• Industry Connections: An established company may have valuable connections within the crowdfunding ecosystem, including relationships with key platforms and influencers.

A company’s longevity and reputation can provide insight into their ability to deliver successful crowdfunding campaigns consistently.

Evaluating the Team’s Experience, Availability, and Enthusiasm

The quality of the team behind the marketing company is crucial. A team that is experienced, available, and enthusiastic can make a significant difference in the success of your campaign. When evaluating the team, consider:

• Experience: Assess the backgrounds of key team members. Do they have experience in marketing, crowdfunding, and your specific industry?
• Availability: A dedicated team that is readily available to answer questions, provide updates, and address concerns is vital. Gauge their communication style and responsiveness during the evaluation process.
• Enthusiasm and Understanding: The team should show genuine enthusiasm for your project and a clear understanding of your business goals. They should be proactive in suggesting tailored strategies to reach your target investors.

A knowledgeable and committed team will be better equipped to create and execute a marketing strategy that aligns with your campaign objectives.

Conclusion

Choosing the right equity crowdfunding marketing company is a critical decision that can significantly impact the success of your campaign. By analyzing their Google Analytics data, reviewing their marketing content, requesting evidence of past successes, measuring ROAS, considering the company’s longevity, and evaluating the team’s experience and enthusiasm, you can make an informed choice. A thorough evaluation will help ensure that you partner with a company capable of maximizing your campaign’s visibility and investment potential.

MediaShares welcomes the opportunity to bid on marketing your capital raise or supervising the work of another agency.

For more information, contact us.