Why 87% of B2B and SaaS Ads Fail on Social Media

Introduction to the Problem

In today's video, we're going to be explaining and breaking down exactly why nearly 90% of B2B and SaaS ads fail on social media. The speaker, Steven Bishop, founder of Studio Flow, has spent 5 years designing over 1,000 ad creatives and has identified key reasons for this high failure rate.

The Issue with Attribution Models

Most companies in the B2B space rely on multi-channel attribution models to measure their ad performance. However, these models can be misleading, as they attribute the first touch to an ad even if the buyer has already been shared internally through other means, such as Slack channels or email threads.

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Invisible Sharing and Its Impact

The problem with current attribution models is that they don't account for "invisible sharing," where ads are shared internally before they're even attributed to the buyer's first touch. This can lead to undervaluation of the best-performing creatives, as they may be attributed to the wrong signals, such as clicks or CPM.

The Importance of Organizational Resonance

To create effective ads, companies should focus on organizational resonance rather than attention. This means creating ads that prompt discussions and sharing within the organization, rather than just trying to grab attention. This is the caption for the image

The Role of Memory Persistence

Memory persistence plays a crucial role in determining the effectiveness of an ad. Ads with higher memory persistence are more likely to be shared and discussed within the organization, leading to better performance.

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The Creative Scaling Trap

The creative scaling trap refers to the practice of optimizing for immediate response, which can lead to a focus on the wrong signals and a lack of organizational resonance. This approach can result in ads that perform well in the short term but ultimately fail to deliver long-term results.

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Conclusion

In conclusion, to avoid the 87% failure rate of B2B and SaaS ads on social media, companies should focus on creating ads that prompt organizational resonance and have high memory persistence. By doing so, they can increase the effectiveness of their ads and ultimately drive more sales.

The key takeaways from this video are:

• Ensure your creatives are focused on organizational resonance rather than attention.
• Use attribution models that account for invisible sharing and memory persistence.
• Avoid the creative scaling trap by optimizing for long-term results rather than immediate response.

By following these tips, companies can create more effective ads that resonate with their target audience and drive real results.