So I have been hosting a number of dinners lately with some close friends and powerful entrepreneurs and executives and it’s a conversation I have been having a lot. Convenience is king. If you can simplify a current market, product or experience, you have a real opportunity to provide value to the end consumer.
There’s a pervasive startup belief that this magical user acquisition arbitrage exists. It’s a reaction to the rapid response of Facebook, Google, and the other CPA-driven, self-service, limitless-inventory destinations. They created an expectation that you can immediately start growing by spend alone. While this might have been true a few years ago, like in those few special moments right after Facebook first launched its mobile News Feed ad product to drive app downloads, it doesn’t work anymore. Every big brand puts big money into direct response and bottom-funnel platforms and programmatic display, and unless you’ve got something special beyond DR, odds are you’re just throwing money into the void.