SA国际传媒

Venture

Startups Turn To Traditional Advertising For Attention

Neon sign: Goodbye Money

On the ride from the San Francisco International Airport into the city, drivers are greeted with a slew of billboards advertising various products from a credit card for startups to Pride-themed data advertisement to a sign that says 鈥淗ello Marijuana, Goodbye Worries.鈥

Arguably, startup funding, inclusion, and weed could be shrugged off as a trifecta of San Francisco鈥檚 most well-known stereotypes.

Subscribe to the SA国际传媒 Daily

However it’s how these messages are being communicated that’s gotten my attention. The startups behind these advertisements (,, and ) are buying highway billboard space to spread the word about their brands. Ironically, they are using a traditional marketing method for progressive concepts/products.

These companies (and others) are going outdoors, sometimes skipping digitally-native advertisements on heavily-regulated platforms like Facebook, Google, and Twitter to reach more customers.

Eaze, a cannabis delivery company founded in 2014 and backed by $51.5 million in funding, said it uses billboards and physical ads simply because it has no other choice.

Cannabis is a highly restricted and highly regulated industry, and as a result the company has to navigate advertising with stealth according to Elizabeth Ashford, head of corporate communications for the San Francisco company.

Specifically, regulation has restricted Eaze鈥檚 ability to advertise online. For example, the company can鈥檛 advertise through Facebook, Twitter, or Instagram, and neither Apple nor Android allow cannabis-selling apps on their devices.

Those restrictions have resulted in a drive from Highway 80 to Sacramento that is filled with Eaze billboards.

鈥淚t鈥檚 less about making a choice to focus on traditional advertising, but more a necessity of utilizing what is available in the industry,鈥 she said.

For what it鈥檚 worth, Eaze has a soft spot for locations near In-N-Outs, Ashford laughed. But, operating in the cannabis industry, they are mindful of where they deliver and advertise. Consequently, the company is careful not to place billboards near schools.

About 40 to 60 percent of their customers come through outdoor advertisements.

Brex, which recently raised $100 million for its startup-friendly credit card, doesn鈥檛 face the same regulation or stigma of a cannabis startup. But it鈥檚 still using the traditional billboard route.

CEO claims Brex, which employed its first outdoor ad for recruiting purposes, is part of a revival for this type of marketing.

鈥淒oing a little never works, you either do a lot or none,鈥 he said during a phone call. 鈥淲e want to generate the feeling that Brex is everywhere.鈥

He added that while Brex does place Facebook and Instagram advertisements, he thinks that paid online advertising is overpriced, another reason behind using outdoor options.

Billboards certainly have their space. Ad company was even created after founder saw a .

Not-So-Old School

Startup is capitalizing on this movement as well. The company raised a $30 million Series A last month to help put digital advertisements atop ride-sharing vehicles. The company鈥檚 moving billboards are another example of how innovation has driven advertising beyond static signs or online ads.

, the company鈥檚 co-founder and CEO told me the company offers impact analytics and a wider reach than digitally-native advertisements, which is contributing to the 鈥渞evolution of outdoor spending.鈥

鈥淓very single person gets out of their home at some point and does something,鈥 he said. 鈥淎nd that means you鈥檙e in the realm of the real world of outdoor advertising.鈥

, a partner at , said Firefly鈥檚 popularity makes sense.

鈥淏efore, you kind of had to guess if your billboard was working,鈥 Yang said over the phone. 鈥淣ow there鈥檚 data to see how many sales you鈥檝e generated in any given month鈥 through more tech and digital options.

Yang thinks there will be a time when there will be too many billboards that we get numb to this method, too. But for now, attention-wise, it鈥檚 pretty . So as the sign says, hello cannabis and goodbye worries.

Illustration:

Stay up to date with recent funding rounds, acquisitions, and more with the SA国际传媒 Daily.

67.1K Followers

CTA

Discover and act on private market opportunities with predictive company intelligence.

Copy link