GTMfund<\/a>, an early-stage venture firm made up of 350+ go-to-market executives from the fastest-growing companies.<\/em><\/p>\n
\nGTM 195 Episode Transcript<\/h2>\n
00:00 \u2013 00:10<\/p>\n
Sophie Buonassisi:\u00a0<\/strong>CPMs over the last 18 months have gone from like $20 on average to as high as like 800. We\u2019ve seen with some of our customers, which is insane.<\/p>\n00:10 \u2013 00:14<\/p>\n
Sophie Buonassisi:\u00a0<\/strong>Keith Putnam Delaney, co-founder and CEO of primer.<\/p>\n00:14 \u2013 00:37<\/p>\n
Keith Putnam-Delaney:\u00a0<\/strong>I really wanted Dev Tool, basically built on an agent platform to make producing integrations way faster. Nobody creates an account on Reddit or Meta with a work email. You get like a 2% 10% match rate. We get incredibly high, like 80% on meta, 50% on Google, like 70% on Reddit, manage rates for our customers. And then that kind of unlocks a lot of interesting possibilities.<\/p>\n00:37 \u2013 00:41<\/p>\n
Sophie Buonassisi:\u00a0<\/strong>There\u2019s a lot of talk about ads in Llms. What is your perspective on all this?<\/p>\n00:41 \u2013 00:50<\/p>\n
Keith Putnam-Delaney:\u00a0<\/strong>Buzz perplexities had their ad program in beta. Obviously OpenAI just launched theirs. From my perspective, I\u2019m excited for it.<\/p>\n00:50 \u2013 01:12<\/p>\n
Sophie Buonassisi:\u00a0<\/strong>What other kind of tactical tips would you give somebody if they were thinking about running? Or they are running paid advertising?<\/p>\n01:12 \u2013 01:14<\/p>\n
Sophie Buonassisi:\u00a0<\/strong>Keith, welcome to GTM now.<\/p>\n01:14 \u2013 01:16<\/p>\n
Keith Putnam-Delaney:\u00a0<\/strong>Hey, Sophie. Thanks for having me.<\/p>\n01:16 \u2013 01:42<\/p>\n
Sophie Buonassisi:\u00a0<\/strong>Yeah, it\u2019s great to have you here. We\u2019re going to cover everything paid, and there\u2019s a lot to cover. But let\u2019s start off with the high level structural changes, because we always say with AI, there\u2019s a lot changing in terms of the investment lens where value accrues with product being easier to build, that value shifts over distribution. We\u2019re seeing the same kind of structural changes happen to specific areas.<\/p>\n01:42 \u2013 01:44<\/p>\n
Sophie Buonassisi:\u00a0<\/strong>What\u2019s happening with paid?<\/p>\n01:44 \u2013 02:12<\/p>\n
Keith Putnam-Delaney:\u00a0<\/strong>I think the the really interesting thing about paid is in the wake of all these incredible changes in AI, is that there\u2019s actually a limited number of channels to capture people\u2019s attention. Right? AI has not produced a new social network. It hasn\u2019t produced something that people are sort of scrolling through for content. What AI has instead done is it\u2019s sort of glutted the existing channels with more content.<\/p>\n02:12 \u2013 02:40<\/p>\n
Keith Putnam-Delaney:\u00a0<\/strong>So you have essentially a supply and demand problem you have and of demand and limited supply, and that\u2019s causing a crazy increase in costs on a lot of digital advertising channels. And yeah, I think it\u2019s one of the unsung stories of the AI or revolution we\u2019re going through.<\/p>\n02:40 \u2013 02:45<\/p>\n
Sophie Buonassisi:\u00a0<\/strong>And with these rising costs, how should people be thinking about their acquisition motions?<\/p>\n02:45 \u2013 03:10<\/p>\n
Keith Putnam-Delaney:\u00a0<\/strong>Yeah. Well, what\u2019s really interesting, you know, if he again think about AI and go to market more broadly, it\u2019s also created a glut on outbound. And everybody is talking about the decrease in effectiveness on outbound these days. So it\u2019s sort of like all right what do you turn to? I think a lot of people are looking at community and kind of event field of field marketing and events again, which is cool.<\/p>\n03:10 \u2013 03:39<\/p>\n
Keith Putnam-Delaney:\u00a0<\/strong>And then on paid, I think a lot of people are left kind of scratching their heads a bit, which is too bad because they\u2019re definitely are opportunities. You know, Reddit is seeing a surge in B2B demand lately. We are seeing more and more brands interested in trying to get Metta to work for them. Some very brave B2B brands are exploring TikTok, so there\u2019s definitely an opportunity there.<\/p>\n03:39 \u2013 03:47<\/p>\n
Keith Putnam-Delaney:\u00a0<\/strong>It\u2019s just that LinkedIn and search have diminishing returns at the moment. It seems like for most of the data that we look at.<\/p>\n03:47 \u2013 04:06<\/p>\n
Sophie Buonassisi:\u00a0<\/strong>Yeah, yeah, you, you nail on the head where a lot of people are scratching their heads and you named a few channels there. Can we actually go through each of the channels and break down? What has changed now with AI and what people should be thinking about with each channel? Like what\u2019s effective, what\u2019s not? Yeah. Where should people be spending their dollars?<\/p>\n04:06 \u2013 04:31<\/p>\n
Keith Putnam-Delaney:\u00a0<\/strong>Totally. So with AI, let\u2019s let\u2019s talk search because it\u2019s always kind of like the bread and butter default channel that marketers go to because it\u2019s high intent. Right? Somebody searching for something, they want that thing. The AI overview is sort of killing search. Slowly but surely, especially unbranded search. AI answers are popping up the majority of time in something like Google and more and more Bing too.<\/p>\n04:31 \u2013 04:55<\/p>\n
Keith Putnam-Delaney:\u00a0<\/strong>So what are people doing? What\u2019s still working? They\u2019re investing the money in competitor keywords, right? So they\u2019re bidding on anybody and everybody. That\u2019s a brand name that might be related to them that\u2019s working. It\u2019s still actually proven to be quite effective. It may continue to work for a while, but it also will suffer from diminishing returns as everybody else starts doing it.<\/p>\n04:55 \u2013 05:04<\/p>\n
Sophie Buonassisi:\u00a0<\/strong>I have to say, yeah, I can\u2019t tell you. Every time I search for a brand, I\u2019m scrolling down six different ads before I actually get to the organic brand.<\/p>\n05:04 \u2013 05:30<\/p>\n
Keith Putnam-Delaney:\u00a0<\/strong>And it\u2019s really interesting. Google\u2019s like, no, we\u2019re not going to do like when people are searching for brands, we\u2019re not going to do AI answers because they need to still make money, right? To fund all those CPU costs. So that\u2019s that\u2019s search kind of in a nutshell on LinkedIn. Wow. I mean, LinkedIn is just like CPMs over the last 18 months have gone from like $20 on average to as high as, like 800.<\/p>\n05:30 \u2013 05:59<\/p>\n
Keith Putnam-Delaney:\u00a0<\/strong>We\u2019ve seen with some of our customers, which is insane. So a lot of people are looking for efficiencies there. They\u2019re still really cool kind of ad formats that LinkedIn\u2019s playing with, thought leadership probably being the one that\u2019s getting the most attention right now. Their CTV placements are actually still pretty effective from a the neat thing about CTV is you can\u2019t skip it, which is kind of fun.<\/p>\n05:59 \u2013 06:39<\/p>\n
Keith Putnam-Delaney:\u00a0<\/strong>So those are those are the kind of the two default channels, I would say for B2B marketers. I think one of the things that a lot of folks don\u2019t realize is that there is the opportunity and possibility of unlocking more traditionally B2C channels. I think Clay just rolled out their ads product. I think it\u2019s a really interesting sort of signal that that they see opportunity in helping users kind of stitch together, helping their customers stitch together, identity between kind of like the LinkedIn level and that, you know, B2C Instagram, you know, me at night sort of doom scrolling.<\/p>\n06:39 \u2013 06:41<\/p>\n
Keith Putnam-Delaney:\u00a0<\/strong>Yeah, yeah yeah, yeah.<\/p>\n06:41 \u2013 06:42<\/p>\n
Sophie Buonassisi:\u00a0<\/strong>All humans at the end of the day.<\/p>\n06:42 \u2013 06:43<\/p>\n
Keith Putnam-Delaney:\u00a0<\/strong>Totally, totally.<\/p>\n06:43 \u2013 06:51<\/p>\n
Sophie Buonassisi:\u00a0<\/strong>In human behavior. Yeah. May look different B2B to be B2C, but truly it\u2019s just humans. Yeah.<\/p>\n06:51 \u2013 06:51<\/p>\n
Keith Putnam-Delaney:\u00a0<\/strong>Yeah.<\/p>\n06:51 \u2013 07:01<\/p>\n
Sophie Buonassisi:\u00a0<\/strong>No, I\u2019m asking all these questions about channels specific to pay because you are yourself an expert in the area. For anyone unfamiliar with primer. Can you give a little bit of context to what you\u2019re building?<\/p>\n07:01 \u2013 07:23<\/p>\n
Keith Putnam-Delaney:\u00a0<\/strong>Sure. So my background wasn\u2019t always impede. I used to be more of a kind of a brand marketer, and then I got really intrigued by data and targeting because at the end of the day, marketing doesn\u2019t really work if you can\u2019t get it in front of the right audience. And what we\u2019ve built, essentially a primer is a targeting layer.<\/p>\n07:23 \u2013 07:47<\/p>\n
Keith Putnam-Delaney:\u00a0<\/strong>So one of the main problems with kind of trying to target people in meta or Google or TikTok or Reddit is they don\u2019t have those B2B sort of filters built in natively. Right? So most folks try to upload a list of work emails, right? Right. And because nobody creates an account on Reddit or meta with a work email, you get like a 2%, 10% match rate.<\/p>\n07:47 \u2013 08:10<\/p>\n
Keith Putnam-Delaney:\u00a0<\/strong>We can change that. And we do. We get incredibly high, like 80% on meta, 50% on Google, like 70% on Reddit, match rates for our customers. And then that kind of unlocks a lot of interesting possibilities, a lot of not only cheaper inventory, but still really effective channels. And then we\u2019re doing some cool things on the measurement front.<\/p>\n08:10 \u2013 08:22<\/p>\n
Keith Putnam-Delaney:\u00a0<\/strong>But yeah, I think what we\u2019re really excited about is nobody really owns the B2B paid acquisition space right now, and we see an opportunity to build something powerful there.<\/p>\n08:22 \u2013 08:34<\/p>\n
Sophie Buonassisi:\u00a0<\/strong>When definitely not across DDC channels like you mentioned, and being able to actually bring the identity of the B2B person over to those channels, that\u2019s a huge gap, a huge gap right now.<\/p>\n08:34 \u2013 08:54<\/p>\n
Keith Putnam-Delaney:\u00a0<\/strong>Totally. But people are like I said, Clay is moving into the space. We\u2019re in the space. Yeah, I think people see that the economics of these sort of two default channels are really working, and they\u2019re looking for new opportunities. And where the money goes is where the startups will go.<\/p>\n08:54 \u2013 09:19<\/p>\n
Sophie Buonassisi:\u00a0<\/strong>And what does that actually do for any kind of measurement? Because I think that\u2019s a huge constraint for a lot of people that are, you know, behind the concept of, okay, we\u2019re humans, we spend time on all these different platforms with scrolling different various things at night. Yeah, but it\u2019s so hard to measure. I know it\u2019s so hard to measure, and especially because, you know, we might scroll something on Instagram tonight, but a lot of the time a demo, for example, might be booked on desktop in the daytime.<\/p>\n09:19 \u2013 09:29<\/p>\n
Sophie Buonassisi:\u00a0<\/strong>So you\u2019ve kind of got the channel fragmentation and expansion, whichever is more suitable there. And they\u2019ve also got it sounds like the device fragmentation too.<\/p>\n09:29 \u2013 09:57<\/p>\n
Keith Putnam-Delaney:\u00a0<\/strong>Yeah. In the device fragmentation is sort of not something I think marketers give enough credit to. You know, even on LinkedIn, the majority of your engagement on LinkedIn is on mobile these days, not on desktop. So LinkedIn is the easiest to attribute because it\u2019s still you. Still people go on desktop, they\u2019re at work, they scroll through LinkedIn, they click on the ad, they go all the way through and they sign up, which is great ideal.<\/p>\n09:57 \u2013 10:29<\/p>\n
Keith Putnam-Delaney:\u00a0<\/strong>I wish everybody did that, but they don\u2019t. So the the challenge and there is no easy answer. If somebody had nailed attribution I mean attribution is where so many startups have gone to die. So attribution is tricky. But I do think like it\u2019s just a process of triangulation ultimately. My friend Pranav over at Paranaque is doing some cool things on the incremental and media mix modeling side of things.<\/p>\n10:29 \u2013 10:53<\/p>\n
Keith Putnam-Delaney:\u00a0<\/strong>I think that\u2019s where a lot of the future leads for the sophisticated paid teams and for earlier stage marketers. You really have to kind of not just look at first touch, last touch. You really have to sort of embrace causality like you have to do holdout groups. You have to even something simple like, hey, we turned up the dial on meta.<\/p>\n10:53 \u2013 11:12<\/p>\n
Keith Putnam-Delaney:\u00a0<\/strong>We saw a ton of leads come in in May. We turned it off in June. We saw, you know, a significant drop. That\u2019s that there\u2019s a strong correlation. There is, you know, let\u2019s. All right. Meta works for us. Let\u2019s keep investing. It doesn\u2019t tell you how much to invest, but at least it gives you signal.<\/p>\n11:12 \u2013 11:16<\/p>\n
Sophie Buonassisi:\u00a0<\/strong>Yeah. Directional data is holdout groups the best way for people to do that?<\/p>\n11:16 \u2013 11:43<\/p>\n
Keith Putnam-Delaney:\u00a0<\/strong>100%. Yeah. Hold out groups are the statistically proven way to do it, right? You basically have a control population, doesn\u2019t see this ad campaign and expose population that does. You compare the conversion rates, all other marketing touchpoints being equal between the two groups. And you see if there\u2019s a statistical lift. And like, honestly, it\u2019s sort of a going back to the good old days of like Mad Men advertising.<\/p>\n11:43 \u2013 12:05<\/p>\n
Keith Putnam-Delaney:\u00a0<\/strong>Yeah, that\u2019s what they that\u2019s what they do. You know it. Zoom is super famous for their they never did any digital advertising right. Only out of home and kind of sponsorships. And they would just compare markets. Yeah. Right. And they would look in Google Analytics and just compare Nashville versus Louisville, you know. Yeah.<\/p>\n12:05 \u2013 12:18<\/p>\n
Sophie Buonassisi:\u00a0<\/strong>And a lot of companies are doing that now. And for out of home just as it\u2019s grown right. That is the best way. And it\u2019s funny we\u2019ve just come over complicated things with attribution when in reality it\u2019s more the directional side, like you said.<\/p>\n12:18 \u2013 12:26<\/p>\n
Keith Putnam-Delaney:\u00a0<\/strong>Totally. Yeah. And it\u2019s just it\u2019s hard to build a model. Everybody wants a model that\u2019s perfect. Yeah, and it just doesn\u2019t exist.<\/p>\n12:26 \u2013 12:44<\/p>\n
Sophie Buonassisi:\u00a0<\/strong>Yes. Yeah, well, you mentioned something that\u2019s super important. Statistical significance. Even if you\u2019re doing holdout groups, what kind of size of company does this make sense to actually scale towards? To have that kind of end that you are hitting statistical significance? Yeah. Who is this for? If I\u2019m kind of listening to this.<\/p>\n12:44 \u2013 13:08<\/p>\n
Keith Putnam-Delaney:\u00a0<\/strong>Yeah, totally. I mean, for the marketer who\u2019s trying to, you know, run a campaign to 500 companies or people, it\u2019s not going to be for you, but you can do it with relatively small sample sizes these days, like even a, you know, a 5000 person audience. Given enough time, you can get to stat sig. Yeah, that\u2019s.<\/p>\n13:08 \u2013 13:30<\/p>\n
Sophie Buonassisi:\u00a0<\/strong>Yeah, pretty doable for a lot of companies. Totally. And what about channel? Let\u2019s say you said the starting place is 5000 people. What about a channel starting place. If you\u2019re, you know, advising any kind of companies and marketers building, is there a channel that they should be starting with, or is that perhaps new to each company?<\/p>\n13:30 \u2013 14:00<\/p>\n
Keith Putnam-Delaney:\u00a0<\/strong>I still think the easiest place to test is LinkedIn. You know, just because they\u2019ve got the filters built into their products. Right? You can define your ideal customers right there and try to go after them. So it\u2019s definitely the easiest place to test. One of the things that I\u2019m I\u2019m really hoping that we\u2019ll, we\u2019ll get into as a, as a company in the next year or so is the barrier to entry to testing.<\/p>\n14:00 \u2013 14:28<\/p>\n
Keith Putnam-Delaney:\u00a0<\/strong>Advertising is just very high, right. Because the, the cost of experimentation is really high. Yeah, that\u2019s one of the things I think about a lot is if I was a kind of solo founder or seed stage startup, how could I? How could I be comfortable making this investment and expecting that it won\u2019t just be, you know, it won\u2019t just be lighting $20,000 on fire, which to me might be a lot of money at that at that stage for sure.<\/p>\n14:28 \u2013 14:33<\/p>\n
Keith Putnam-Delaney:\u00a0<\/strong>It\u2019s something that I think we we\u2019re going to have some cool features around at some point.<\/p>\n14:33 \u2013 14:53<\/p>\n
Sophie Buonassisi:\u00a0<\/strong>Oh very cool. We\u2019ll have to revisit this when it comes out. Super exciting. But you\u2019re right, it is a hard barrier, kind of higher barrier to entry. And totally maybe just as we talked about at the beginning, certain areas become a little bit more commoditized, if you will. That is one area that kind of retains that barrier to entry is paid.<\/p>\n14:53 \u2013 15:09<\/p>\n
Sophie Buonassisi:\u00a0<\/strong>Yeah. So when we think about at the macro level, know where those areas and gaps and opportunities and you call that a few different channels including community including page like where does page sit in terms of kind of where people are going. Are you seeing an uptick or are you seeing people pull spend.<\/p>\n15:09 \u2013 15:10<\/p>\n
Keith Putnam-Delaney:\u00a0<\/strong>Out, know.<\/p>\n15:10 \u2013 15:10<\/p>\n
Sophie Buonassisi:\u00a0<\/strong>What\u2019s happening?<\/p>\n15:10 \u2013 15:36<\/p>\n
Keith Putnam-Delaney:\u00a0<\/strong>I think we\u2019re seeing people double down on paid, just in part because outbound is I mean, paid is the is the top channel for for most companies. It takes a lot of for and I should say for most marketing teams and kind of go to market teams, you know products obviously you have I mean there\u2019s there\u2019s product growth loops that are really powerful.<\/p>\n15:36 \u2013 16:08<\/p>\n
Keith Putnam-Delaney:\u00a0<\/strong>But I think, you know, paid is basically outside of product growth loops. The the biggest area of investment and is outbound really decreases in effectiveness. People are turning money into pouring more money into paid because they can still make the ROI pencil, even though it is getting more expensive. Yeah. And what I think as a result, though, of that increase in cost, is they\u2019re turning to the channels where it\u2019s cheaper to advertise and where they can still get that ROI.<\/p>\n16:09 \u2013 16:10<\/p>\n
Sophie Buonassisi:\u00a0<\/strong>Which are the Reddit\u2019s. Like you.<\/p>\n16:10 \u2013 16:32<\/p>\n
Keith Putnam-Delaney:\u00a0<\/strong>Said, the Reddit\u2019s the meta, you know, the Instagram. So the places where people like were there and it\u2019s sort of kind of an obvious thing, but it\u2019s like people that\u2019s where people are spending their time. You should be where they are to begin with. Even if, even if LinkedIn wasn\u2019t so expensive, you should probably still be on Instagram because that\u2019s where your audience hangs out.<\/p>\n16:32 \u2013 16:33<\/p>\n
Keith Putnam-Delaney:\u00a0<\/strong>Yeah, definitely.<\/p>\n16:33 \u2013 16:45<\/p>\n
Sophie Buonassisi:\u00a0<\/strong>No, it makes sense. Are you seeing a certain kind of split between channels that people diversify across, or is that quite variable from company? Just as you know, marketers are thinking about their channel diversification.<\/p>\n16:45 \u2013 17:13<\/p>\n
Keith Putnam-Delaney:\u00a0<\/strong>Yeah, I think it\u2019s somewhat persona dependent. Yeah. So Reddit right isn\u2019t for everyone. You know, we\u2019ve seen match rates on Reddit as high as 70%, 80% for IT and engineers and then 4% for legal or procurement. Right. Because it\u2019s a smaller community and not everybody\u2019s on their, I think, the same. Like it\u2019s actually really interesting to think about the channels where people aren\u2019t on LinkedIn.<\/p>\n17:13 \u2013 17:13<\/p>\n
Keith Putnam-Delaney:\u00a0<\/strong>You know.<\/p>\n17:14 \u2013 17:14<\/p>\n
Sophie Buonassisi:\u00a0<\/strong>100.<\/p>\n17:14 \u2013 17:46<\/p>\n
Keith Putnam-Delaney:\u00a0<\/strong>Percent like doctors, not on LinkedIn. Educate people in education, not on LinkedIn. So those are some of the things that I think are actually kind of quite interesting is it really varies by persona, but the majority, for better or for worse. And I think it\u2019s for worse. The place where we see people continuing to dial up investment is on search, and I just think it\u2019s kind of foolish, like I really do.<\/p>\n17:46 \u2013 18:08<\/p>\n
Keith Putnam-Delaney:\u00a0<\/strong>I don\u2019t think I they, they\u2019re like, oh, well, we\u2019re paying $8,000 for it, you know, for a good for an opportunity, you know, and it\u2019s like we can still afford that. But it\u2019s like, but is that the right question to be asking yourself? Like, is there not something much better, cheaper, higher volume way to get that. Yeah yeah, yeah.<\/p>\n18:08 \u2013 18:13<\/p>\n
Sophie Buonassisi:\u00a0<\/strong>Why are people spending more and doubling down than if it\u2019s only getting more expensive?<\/p>\n18:13 \u2013 18:32<\/p>\n
Keith Putnam-Delaney:\u00a0<\/strong>That\u2019s a great question. Fear. I think I\u2019m trying something new. The cost of falling on your face, you know. Yeah. You know, like, again, that lighting money on fire. It\u2019s hard to know. Paid typically takes a fair amount of experimentation to get right.<\/p>\n18:32 \u2013 18:57<\/p>\n
Keith Putnam-Delaney:\u00a0<\/strong>I\u2019ll just. I\u2019ll just say where I sort of teased it earlier, but I just say, like, what I think is hugely missing in in paid is benchmark data, right? It\u2019s like understand like no. Why like it boggles my mind that there isn\u2019t a company out there that doesn\u2019t aggregate and anonymize segment by persona and then say, okay, here\u2019s what\u2019s working.<\/p>\n18:57 \u2013 19:20<\/p>\n
Keith Putnam-Delaney:\u00a0<\/strong>If you\u2019re going after cybersecurity companies, here\u2019s what you know, here\u2019s what\u2019s working. If you\u2019re going after HR and sort of helping like provide that data to help steer. Now, does it lead to like a reversion to the mean? Yes. But like and will the best marketers always kind of still take a first principles approach. But I think it de-risk a lot of the the investment.<\/p>\n19:20 \u2013 19:29<\/p>\n
Keith Putnam-Delaney:\u00a0<\/strong>If you can learn from your peers in a way that\u2019s a that\u2019s not compromising, I guess is the right word. Yeah.<\/p>\n19:29 \u2013 19:47<\/p>\n