How to thrive In Equity Crowdfunding via Digital Marketing

How to thrive In Equity Crowdfunding via Digital Marketing

Small companies needing equity crowdfunding online from the general public will need to do more than just post an appealing video and graphics, accompanied by text, and expect millions of dollars to come pouring in. This generally doesn’t happen, due to the flawed marketing of the offering. The bottom line is effective social media marketing will help drive the investors to your equity crowdfunding campaign.

Have you ever wondered why after browsing for some item on Amazon, you invariably get bombarded with those very ads that you had shown interest in? This is because Amazon has attached pixels and cookies to your computer while you searched for these items on its web pages.

If the same means are applied to equity crowdfunding, you can well imagine how effective it will prove to urge your potential investors to fund a new product, based on the data collected of their online habits. Let us see five tips related to digital marketing that will make your marketing plan for equity crowdfunding a success.

#1 Using Facebook ads

With the ever-growing numbers of Facebook users, this social medium is becoming indispensable for effectively targeting potential investors for equity crowdfunding offerings through an effective Facebook campaign. This campaign will be based on the location, demographics, and interests of the Facebook user. Stephanie Heinatz, CEO, The Consociate Group, has this to say, “Facebook is the number one platform in social media marketing where you can target a customized audience. No more wasting money on a megaphone of messaging to who-knows-who. Facebook is like picking up the phone and selling directly to someone.” Her observation needs to be taken seriously since she holds special expertise in digital marketing and has successfully run numerous equity crowdfunding campaigns.

#2 Using ‘lookalike’ audiences

‘Lookalike’ audiences can be created from the email database of customers and investors that you hold. You can then serve them ads on the Facebook. Delray Wannemacher of First Look Equities has succeeded in driving investors to equity crowdfunding on the sheer strength of creating ‘lookalike’ audiences from his proprietary investor database and then delivering them crowdfunding campaign offerings. Giving an example of how the impact of a well-designed ad campaign for crowdfunding offering can have on the target audience, he says, “One Facebook ad campaign we ran showed an improvement on the amount of investments per day of 252 percent, with the average investment being three times higher than before the campaign.”

#3 Search Engine Marketing (SEM)

How SEM helps is to identify people who are looking for a purchase or an investment. This involves paying for certain search terms and letting Google drive traffic to your crowdfunding campaign. This way you will also be able to reach your potential investor since you are directly within reach of these already identified people.

#4 Ads on Twitter and LinkedIn

There is no denying that Twitter has become one of the most popular social media sites. Twitter advertising can be made use of for marketing equity crowdfunding, as you are able to promote and grow your community on this social medium. With LinkedIn, your ads work best in a B2B context. They can help direct people, comprising potential investors, to a lead generation page for the crowdfunding offerings.

#5 Email Marketing

If you think email marketing is passé, think again. It still holds its own among the newer marketing tactics that include social media and video. Email marketing can be used for driving a successful equity crowdfunding offering. Even digital marketing strategists like Rob Clarke and Andrew Eckard of Lin Digital are of the view that email is a crucial platform for driving local regional and national businesses, the good old-fashioned way. Since it still provides one of the best opportunities to build relationships that, in turn, helps boost your crucial crowdfunding campaign by reaching your potential crowdfunding investors.

In today’s day and time, digital marketing has become a crucial component in driving potential investors for equity crowdfunding offerings, much like that of the rewards-based crowdfunding. For you to succeed in your endeavors in equity crowdfunding, it is important to get the right professionals. They are in the best position to provide the most effective strategy and would also know whom to target to make your crowdfunding campaign a success.

This post is part of our contributor series. It is written and published independently of TNW.

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