SaaS Founders and Terrible Ads: Here's What I Think
I recently read a rather pointed take online: most SaaS founders are, to put it bluntly, terrible at running ads. The argument wasn't that Meta or Google are rigged against them, but that founders themselves are the root cause of their advertising woes. It’s a bold claim, but one that resonated with me. Let's unpack this a bit.
The Blame Game: Algorithm vs. Fundamentals
It's easy to blame the algorithm. When your ads aren't performing, it's comforting to think that some unseen force is working against you. “The targeting is off.” “The CPMs are too high.” “The algorithm hates me.” We’ve all been there (or at least, I have!). But the core of the argument I saw was that these are often excuses masking a deeper problem: a lack of understanding of advertising fundamentals.
Think of it like this: you can have the fanciest, most expensive kitchen in the world, but if you don't know how to cook, you're not going to produce a Michelin-star meal. Similarly, you can have the most sophisticated ad platform at your fingertips, but without a solid understanding of *why* ads work, you're just throwing money into the void.
The Two Deadly Sins of SaaS Advertising
According to the original poster, the two main reasons SaaS ads fail are:
1. **Not knowing *what* ad to make: This is the creative aspect. It's about crafting a message that resonates with your target audience and compels them to take action. Many founders struggle with this because they're too close to their product. They know all the features and benefits inside and out, but they fail to translate that into a compelling narrative for potential customers. 2. Not knowing *why* an ad works:** This is the strategic aspect. It's about understanding the underlying principles of advertising, such as targeting, messaging, and conversion optimization. Many founders treat advertising as a black box, throwing money at it and hoping for the best. They don't track their results, analyze their data, or learn from their mistakes.
I think this is spot on. We often get so caught up in the technical aspects of advertising that we forget the human element. Ads aren't just about clicks and impressions; they're about connecting with people on an emotional level and persuading them to take action.
The Winning Advertiser's Playbook
So, what separates the winning advertisers from the struggling ones? According to the post, they do three things:
1. Track ad-level patterns: They don't just look at overall campaign performance; they dive deep into individual ads to identify what's working and what's not. They track things like hooks, angles, formats, and objections to understand what resonates with their audience. 2. Reuse proven structures: They don't try to reinvent the wheel. They look for successful ad structures in other industries and adapt them to their own product. This is a smart way to leverage the collective wisdom of the advertising world and avoid making costly mistakes. 3. Refresh creatives quickly: They don't let their ads go stale. They constantly test new creatives and iterate on their messaging to keep things fresh and engaging. This is especially important in today's fast-paced digital landscape, where attention spans are shorter than ever.
This is where the 'stealing' comes in - but let's call it 'smart borrowing'. It's not about copying verbatim, but about understanding the *principles* behind successful ads and applying them to your own context.
My Take: The Founder's Blind Spot
I think a big part of the problem is the founder's perspective. We're so passionate about our products that we often struggle to see them from the customer's point of view. We assume that everyone else will be as excited about our features as we are, but that's rarely the case.
We need to step back and ask ourselves some tough questions:
* What problem does our product solve? * Who is our ideal customer? * What are their pain points? * What motivates them? * What are their objections?
Once we have a clear understanding of these things, we can start crafting ads that speak directly to our target audience and address their specific needs.
The Danger of Feature-Focused Ads
One of the biggest mistakes I see SaaS founders make is focusing too much on features in their ads. They list all the bells and whistles of their product, hoping that something will stick. But features alone rarely sell. People don't care about features; they care about benefits. They want to know how your product will make their lives easier, better, or more profitable.
Instead of saying, "Our product has advanced AI-powered analytics!", try saying, "Stop wasting time on manual reporting. Our AI-powered analytics will give you the insights you need in minutes."
See the difference? The first ad focuses on a feature, while the second focuses on a benefit.
The Importance of Understanding Your Customer's Journey
Another crucial aspect of successful advertising is understanding your customer's journey. How do they discover your product? What are their initial thoughts and feelings? What steps do they take before making a purchase?
By mapping out your customer's journey, you can identify the key touchpoints where advertising can have the biggest impact. For example, if you know that most of your customers discover your product through search engines, you can focus on creating ads that target relevant keywords. If you know that they're hesitant to make a purchase because of price, you can offer a free trial or a discount.
What I Would Do Differently
If I were launching a new SaaS product today, here's how I would approach advertising:
1. Start with research: I would spend a significant amount of time researching my target audience and understanding their needs, pain points, and motivations. I would read industry blogs, participate in online forums, and talk to potential customers to get a deep understanding of their world. 2. Focus on benefits, not features: I would craft my ads around the benefits of my product, not the features. I would focus on how my product will make my customers' lives easier, better, or more profitable. 3. Test, test, test: I would constantly test new creatives, messaging, and targeting options to see what works best. I would track my results closely and analyze my data to identify patterns and insights. 4. Borrow from the best: I would study successful ads in other industries and adapt them to my own product. I wouldn't be afraid to 'steal' ideas, as long as I put my own spin on them. 5. Be patient: I would understand that advertising is a long-term game. It takes time to build a brand and generate consistent results. I wouldn't get discouraged by initial failures, but would instead learn from my mistakes and keep iterating. 6. Prioritize organic first: While ads can be powerful, I'd always prioritize building a strong organic presence. This means creating valuable content, engaging with my audience on social media, and optimizing my website for search engines. Organic traffic is more sustainable and cost-effective in the long run. Think of ads as an accelerant, not the primary fuel.
The Bottom Line
Advertising can be a powerful tool for SaaS founders, but it's not a magic bullet. It requires a deep understanding of your target audience, a compelling message, and a willingness to test and iterate. If you're struggling with your ads, don't just blame the algorithm. Take a hard look at your fundamentals and see where you can improve. And remember, it’s okay to laugh at your own failures along the way – I certainly do!
It all boils down to truly understanding your customer and speaking their language. If you can do that, you're already ahead of the game. And who knows, maybe you'll even avoid being labelled as 'terrible at ads'. At least, that's the goal, right?