Welcome to Closing the Growth Gap!
I’m Ben Scandlen, co-founder of Mosaic Growth Solutions. In this blog, I share my insights on the most interesting topics in growth and marketing, drawing from my experience assessing hundreds of B2B SaaS companies and driving millions in growth. Today, we’ll explore the concept of advertising in B2B SaaS and why it goes beyond just PPC.
Advertising in B2B SaaS: More Than Just PPC
Liam Moroney says that advertising in B2B SaaS does not equal PPC.
Read his post here.
My Thoughts:
Most PPC isn’t truly advertising; rather, it’s about ensuring physical availability. Brands need to use PPC to be easy to find and easy to buy. However, it has limited impact on mental availability, which is crucial for long-term brand building.
Supporting Insight:
Byron Sharp argues that paid search isn’t really advertising; it’s more akin to shelf space in a store. Learn more from Byron Sharp here.
Key Takeaways:
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Paid Search Should Always Be On
Just like prime shelf space in a retail store, paid search needs to be consistently available to capture interest and drive conversions. Nielsen’s research shows that 60% of all marketing spending goes towards maintaining a brand’s physical availability. -
Its Impact Should Be Measurable
The impact of paid search should be tracked and analyzed. According to a report by Google, businesses make an average of $2 in revenue for every $1 spent on Google Ads. This measurable ROI underscores the importance of continuous investment in paid search. -
Physical and Mental Availability Are Both Needed
Physical availability ensures that your product is easy to find, while mental availability ensures your brand is top-of-mind when a need arises. A study by the Ehrenberg-Bass Institute found that brands that invest in both physical and mental availability grow faster than those that focus on just one.
Applying Physical Availability to B2B SaaS
If you’re having trouble understanding physical availability in the context of B2B SaaS, consider the example of Dollar General. This discount chain excels in physical availability by being conveniently located and easy to access. See Dollar General’s approach here.
My Insights:
Physical Availability Is a Powerful Factor in Driving Growth
Physical availability, in the digital sense, means being omnipresent across all relevant channels. For B2B SaaS companies, this includes being visible on search engines, industry forums, review sites, and social media platforms. According to a McKinsey report, B2B buyers engage with 11 different channels before making a purchase decision.
Does Physical Availability Apply to B2B SaaS?
Absolutely. In the digital age, physical availability translates to being easily discoverable online. A study by Forrester found that 74% of B2B buyers conduct more than half of their research online before making a purchase. If your brand isn’t visible during this research phase, you’re missing out on potential customers.
How Can We Apply Lessons from Dollar General to B2B SaaS?
Dollar General’s success lies in its strategic locations and consistent presence. B2B SaaS companies can emulate this by ensuring they are present across all major digital touchpoints:
- Search Engine Optimization (SEO): Invest in SEO to ensure your website ranks highly for relevant keywords. This increases your organic visibility, akin to having prime shelf space in a digital marketplace.
- Paid Search and PPC: Maintain an active paid search campaign to capture immediate demand and drive traffic to your site. Remember, paid search should be consistent to mimic the “always available” nature of physical shelf space.
- Content Marketing: Create high-quality content that addresses the pain points and needs of your target audience. This builds mental availability by establishing your brand as a thought leader.
- Social Proof and Reviews: Encourage satisfied customers to leave reviews and testimonials. Social proof is a critical factor in B2B purchasing decisions, with 92% of buyers more likely to purchase after reading a trusted review (Gartner).
Conclusion
In summary, advertising in B2B SaaS extends beyond PPC. It involves a strategic focus on both physical and mental availability to drive growth. By learning from successful models like Dollar General and adapting these strategies to the digital realm, B2B SaaS companies can enhance their visibility, attract more customers, and achieve sustainable growth.
Thank you for tuning into Closing the Growth Gap. Let’s continue to drive growth together.
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