Take your Business to new Markets with High-performing Media Campaigns
At Leverate we work with a multitude of start-ups and fast growing companies with a digital business model (e.g. e-commerce, apps, and e-services). Many of them need to scale their business rapidly in order to succeed in a highly competitive environment.
Once a business is established and thriving in its domestic market, it is often seen as the right time to expand the business into new territories. This is very often initiated by decreasing growth rates and increasing cost per acquisitions in a saturated home market.
Thus, expanding into a new market can be an effective way to leverage your core business for growth. But this is not the only reason why start-ups enter new markets. Sometimes, start-ups seek a higher valuation by more attractive investors abroad compared to common lower valuations in their home market. No matter the reasons, when making new market entry decisions, a company should carefully plan the market entry and properly assess the opportunities and risks of a new market.
Marketing and media are two very important components and key drivers for a successful market entry. This is especially true for start-ups and fast growing companies with a digital business model that is scalable if it is supercharged by the right media setup. Leverate´s proven market entry roadmap consists of three major phases in a successful market entry with the optimal media setup:
(1) the Ramp-Up Phase;
(2) the Soft Launch Phase Launch;
(3) Launch (Scaling) Phase
The ramp-up phase is fundamental. It is crucial not only for the soft launch but also to allow a maximum of efficiency and scalability when entering the launch (scaling) phase. The ramp-up phase contains (1) a detailed and holistic market entry roadmap including all involved business partners, timelines, milestones, objectives and KPIs; (2) kick-off meetings with all involved parties to ensure that individual work supports the greater project objectives; (3) a project management setup to monitor milestones, objectives and deliverables; and (4) experts that test and guarantee the functioning of all technical necessities (e.g. tracking and load tests).
The soft-launch phase follows a successful project ramp-up and is similar to a “beta start” with the aim of testing and optimizing digital functionalities, operations, ad creation, delivery and media performance in relevant test scenarios. This phase builds the foundation for a long but ascending data-driven path of scaling media. More insights during the soft launch result in a more efficient way of scaling the business in the launch (scaling) phase.
The best performing and most efficient media in the beginning of a market entry are typically digital channels, such as Search Engine, Affiliate and Facebook. Especially Facebook provides you with deep and comprehensive insights about potential target audiences, best performing creatives and product preferences in the new market. All existing insights from the domestic market or other previously launched markets should be taken into account for the test campaign setup as well.
All test campaigns within the soft launch phase have very competitive and ambitious targets (e.g. ROI, CPO, CPL, CPI). In order to achieve these ambitious targets, a distinguished and intelligent campaign optimization process is necessary. Leverate´s campaign optimization approach is based on test sequences (also called ‘loops’) to acquire the insight necessary for both performance (how do we reach our target KPIs?) and scalability (how do we maintain performance once we ramp up the campaign scope?).
The optimization approach, including all loops, is designed to identify the best performing combination of image, copy, targeting and several other criteria that ensures the client´s test campaigns meet the desired KPIs and result in the best performing ad ( the ‘best performer’). Once we know what performs best, we do not stop. In order to be able to scale that campaign, several best performers are required. New testing loops are done based on the best performer in the soft launch phase. Our scaling process is designed to reveal even deeper insights and granular combinations of audiences and ad creatives, allowing further scaling while maintaining the target KPIs.
Besides the digital performance channels, Direct Response TV (DRTV) can be an important channel for entering and scaling a new market successfully. Leverate recommend that you start a DRTV test campaign once the digital channels (especially Search Engine and Facebook) are working efficiently. The TV test campaign should not be too minimalistic nor should it be a full-blown TV campaign where you risk wasting budgets entering new waters.
A successful test campaign includes an optimal DRTV media buying process, a smart and performance-driven media plan as well as a realistic results forecast and a performance tracking solution. It’s a fine line to tread and Leverate can support you with identifying the perfect TV budget and plan for a DRTV test in line with your needs and objectives.
Optimized and comprehensive test campaigns both in Digital and TV are essential for a transition from the soft-launch phase into the launch (scaling) phase. Only a scalable and efficient media setup will provide you with a successful market entry.
Launch (Scaling) Phase
This step is the start of scaling your business in the new market. Absolute efficiency and scalable media performance are essential in order to meet your mid- and long-term objectives, which make the foundation you built through Phase 1 & 2 more than crucial. In the scaling phase, multiple yet holistically aligned online and offline media channels will provide you with massive high quality traffic that needs to be converted perfectly. Furthermore, not only will it boost sales, it will also have valuable viral and branding effects.
This is the tipping point. From here on its pure dedication that is necessary to extract the maximum and to truly multiply the effects. Relentlessly optimizing all media channels, combining performance and branding media, coordinating online and offline channels will make the difference in gaining significant market shares to get ahead.
If you are considering a new market entry, get in touch with Leverate to discuss the perfect media setup to execute a successful market entry launch for your business.
This blog post is an adapted version of an article that featured in Leverate Media’s company magazine ‘Leverate ONE‘.