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Read What Top Tech Founders Have to Say About Marketing, Before You Burn Your Money

Why Market Research is Critical Before Spending on Marketing

Walter Akolo Feb 14, 2025 2:13:20 PM

Many tech startups struggle with when and how to invest in marketing. Some rush in too soon, hiring full-time marketers, running ads, and launching campaigns without a clear strategy.

Others hesitate altogether, fearing wasted budgets and opting to rely on organic growth or word-of-mouth. Both approaches can be costly mistakes.

  • Investing in marketing too soon, without validating positioning, leads to inefficient spending and poor results.
  • Avoiding marketing entirely results in slow growth and missed opportunities to build a customer pipeline.

Skipping market research before spending on marketing leads to wasted money, poor results, and frustration.

Before hiring, running ads, or automating outreach, you need to validate your messaging, channels, and strategies.

We asked tech founders and marketing experts about their biggest marketing challenges and the strategies that worked for them. Here’s what they shared.

1. Cutting Through the Noise in a Crowded Market

One of the most common challenges tech startups face is standing out. With thousands of companies competing for attention, it’s hard to differentiate.

William Lupo (Strategic Advisor at UbiGrowth) put it best:

“Many tech startups struggle to differentiate themselves due to limited budgets, unclear positioning, or a lack of focus on their unique value proposition. Balancing the need for quick results with long-term brand building is also a common hurdle.”

Similarly, Sherri Schwartz (Head of Marketing at OvationCXM) emphasized the struggle of building credibility with limited resources:

“Startups have fewer resources and less budget, yet building trust and credibility and growing your audience is imperative. So, how do you ‘do it all’ with less?”

Tony DiSanza (CRO at SimplAI and advisor for various startups) added:

“Scaling up and building brand awareness in a crowded market while developing a solution that evolves within the rapidly changing AI ecosystem is a significant challenge. No dominant player has emerged yet, making differentiation even harder.”

Solution: Instead of spreading thin, focus on one marketing strategy at a time.

Rick Hou (Founder at Augmented) highlighted a unique challenge in the AI space:

"The tech space is crowded with startups offering similar products or services, making it difficult to establish a clear and unique value proposition. This challenge is worsened by the misconception that AI eliminates the need for technical, product, and domain expertise, leading to a flood of poorly developed and poorly planned proof-of-concepts being presented as fully realized products. All of this can also reduce customer trust, making it difficult to establish validation required for funding."

If you're a startup struggling with positioning, our Foundation Package helps you define your ideal customer profile (ICP), messaging, and marketing funnel before spending a dime on ads.

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2. Messaging That Resonates with Customers

Another mistake startups make? Leading with features instead of solutions.

Tim Eggena (Strategic Advisor in the Healthcare and Health IT Space) shared this insight:

“So often, people sell by showing off features x, y, and z, which doesn’t work and is a time suck. Mike Scher taught me to ‘lead your clients to the solution, not lead with the solution.’”

Similarly, Dan Allard (Chief Revenue Officer at Metaspex) pointed out that many startups fail to align messaging with what their customers actually care about.

“Startups focus on their technical capabilities rather than the business problems they solve. This misalignment significantly impacts growth potential.”

Dan also added,

"One approach I'm particularly excited about is the use of distinctive, personality-driven video content, as pioneered by the Video Brothers. They've shown how breaking away from traditional, corporate-style marketing videos in favor of fun, standout content can dramatically differentiate a brand in the tech space. This strategy is powerful because it not only captures attention but also makes complex tech solutions more accessible and memorable. It's an approach I believe more tech companies should consider, especially in today's crowded digital landscape where traditional content often gets lost in the noise."

Solution: Instead of talking about what your product does, talk about the pain points it solves. A well-defined elevator pitch can make all the difference. Let's talk about how we can refine your elevator pitch.

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3. The Right Strategies for Limited Budgets

Once your positioning is clear, the next challenge is scaling up without breaking the bank. Several experts shared budget-friendly tactics that made a big difference:

William Lupo:

“Leveraging automation and AI-driven tools like HubSpot or SHAPE allows startups to engage customers meaningfully without overextending resources.”

Sherri Schwartz:

“Prioritizing high-quality, multi-channel content—especially video—has been an easy win. Take a long interview, slice it into snippets, and use it across multiple platforms.”

Tony DiSanza:

“Investing in a CRM and a data enrichment tool like Apollo, plus guided product demos, helps build trust and support a longer sales cycle.”

Mark Hockridge (CRO at PropertyRadar and Strategic Advisor at CREtelligent):

“Most startups try to utilize multiple channels at the same time but fail to get traction. Focus on a single channel and master it before moving to another growth lever.”

Rick Hou also shared his approach to engaging early adopters:

"It's important to find your niche early and engage them on a deep and personalized level. The most effective way to get someone's attention is still in-person engagements like a pitch meeting or being on a panel. Short of that, the next best way in our experience to 'market' to early adopters is to provide an option for people to experience your product or services in a limited way and follow up with a survey."

Solution: Automate wherever possible and focus on the highest-impact activities first.

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4. Overcoming the Data and Privacy Challenge

Marketing is becoming more complex due to data restrictions and rising ad costs. Vern Hanzlik (CEO at VisitIQ) explained:

“Large corporations like Meta, Google, and Amazon have created data monopolies, limiting access to valuable customer insights and driving up advertising costs. At the same time, evolving privacy regulations have made it harder than ever to deliver personalized experiences.”

This means startups are forced to rethink their targeting and marketing strategies. His strategy? Leveraging real-time intent-based behavioral data to target the right audience at the right moment.

For startups, this means:

  • Using organic strategies like partnerships, referrals, and inbound content.
  • Testing audience engagement before scaling ad spend.
  • Investing in first-party data strategies like email lists and community building.

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Key Takeaways for Startups

  1. Start with research before spending on marketing. Define your ICP, messaging, and go-to-market strategy first.
  2. Focus on a single channel and master it. Avoid the temptation to do everything at once.
  3. Lead with the problem, not the product. Your audience cares about their pain points, not your features.
  4. Use automation and content marketing to scale. Leverage AI, CRM, and repurposed content for efficiency.
  5. Adapt to privacy changes. Own your audience with first-party data strategies like email and organic engagement.

Want a structured approach to scaling your marketing? Check out our Foundation Package and launch a sustainable marketing system in 30 days.

Final Thoughts

Marketing for tech startups isn’t about throwing money at ads and hoping something sticks. It’s about getting your foundation right, choosing the right strategy, and executing with precision.

If you want to stop wasting money on trial-and-error marketing, let’s talk. We help you build a marketing engine that actually works, without hiring a full-time team or spending thousands on failed campaigns.

Schedule a Free 1-Hour Marketing Audit and Sign Up for Our Foundation Campaign Today