Digital marketing
A growth company is not big yet but no longer small either. Let us go through how to scale digital marketing so revenue grows without the margins disappearing.
In brief
- A growth company’s budget: 5–15 % of revenue to digital marketing.
- Diversifying channels is the growth stage’s number one job.
- An in-house team plus an agency works best.
- Attribution models become critical in the growth stage.
- Scale the channels where CAC is already proven.
The best channels
The proven channel
Whichever one already has a demonstrated CAC. Scale that first.
Retargeting in a second channel
Once the first channel scales, add retargeting elsewhere.
An awareness channel
Then a third channel for awareness.
New markets
Only at the end do you expand geographically.
The order in which to scale channels
1. Start with one channel where CAC is proven.
2. Once it scales, add retargeting in a second channel.
3. Then a third channel for awareness.
4. Only at the end expand geographically into new markets.
Team structure in the growth stage
A growth company at €1–2m revenue: one in-house marketing manager plus an agency.
€3–10m: an in-house marketing team (2–4 people) plus specialist agencies.
€10m+: a large in-house team (5+) plus a performance agency.
Always: somebody responsible for the data and attribution.
The metrics a growth company tracks
CAC (customer acquisition cost) per channel.
LTV (lifetime value) per customer group.
The LTV/CAC ratio (target 3:1 or better).
Payback period (months to recover the acquisition cost).
Frequently asked questions
How much budget for a growth company?
5–15 % of revenue. During scaling, 20–30 % is realistic.
When is it worth hiring an in-house marketing manager?
At €1–2m of revenue, at the latest by €5m.
Is an agency necessary in the growth stage?
Yes. Specialist skills and scalability require one.
Worth a look too
Read these related articles and service pages too:
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