Ryan Pineda interviews Neil Patel to discuss growth hacks and how to scale your marketing.

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The reason I don’t keep track of that is a customer who gives you 500 million in ad spend to manage, percentage-wise, you make a lot less than someone who gives you 30, 40, 50 million to spend right? So the numbers vary across the board. More so we track revenue for our organization and growth.

Next year, I don’t know what’s going to happen with the economy. My guess is we won’t grow 20%, we’ll grow more than 10. My guess is we’ll be somewhere in that range. The return is still there. So companies won’t cut back too much because if you’re spending a dollar and it makes you 70 cents in profit, right, for every dollar you spend. So you’re making more than that in revenue, a portion of its profit, you’re not going to stop spending in a good market or a bad market.

Yes, but at these organizations, you have tons of CMOs because they have different divisions. When companies make like five, 10, or 20 billion a year in profit, not revenue. And this is billion with a B, you got tons of CMOs, you have tons of CFOs, it’s what division and all rolls up into maybe a global CMO or a global CFO. And then when you’re doing marketing, typically, the marketing is done division by division. Because these large corporations have so many different products and offerings, it’s one after another, and then you got to work your way up the ladder.

So we actually even surveyed 8,000 plus companies for 2023. Most people are spending more on digital. Traditional is going down. Television, radio, billboards, print. We’re seeing a decline there. The majority of them are cutting budgets there because it’s not direct ROI.

And it’s using Google suggest data. So Google starts pulling what are people typing in right now within that region that they weren’t typing in before that’s becoming popular. And then we just pull from that.

So I think organic social is going to become harder and harder. Reach is continually getting cramped. And I see people and influencers having no choice but to eventually start spending more on ads and starting up. The second thing that we’re seeing is there’s going to be a big influencer pay with companies paying influencers to be brand evangelists. And not in the way that most companies are doing it right now. People will be like hey, I’m going to go pay a Kardashian and have them post a photo. That’s not working that well compared to what it used to four or five years ago. But what is working is saying, I’m going to do a deal with a Kardashian, give them some money, have them be part of the company, give them a little bit of equity. And they’re going to promote the product consistently. And they’re also going to be part of the website and the landing page and the story’s going to make sense and the product’s going to be very related to their audience. And we’re seeing that being super effective.

And I’ve had tons of conversations with CAA, looking at a lot of the deals because they work with a lot of these influencers and they even have incubation there. And I’ve seen the revenue numbers for a lot of these businesses and a lot of big celebrities. Not with a million or even 10 million followers. I’m talking about like 50, a hundred million followers. You’ll be shocked on how many of them are launching products like supplements or protein, let’s say if the influencer’s buff or whatever. And you’ll be shocked on how little revenue and how little profit the companies are actually generating. A lot of it’s systems, processes, and operations where they’re breaking down.

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