Advertising on short video

The amount of revenue a startup should spend on advertising can vary widely depending on several factors. Here’s a concise overview:

1. Industry standard: Many businesses allocate 5-12% of revenue to marketing, which includes advertising.
2. Growth stage: Early-stage startups often spend more (sometimes 20% or higher) to gain market share.
3. Business model: B2C companies typically spend more on advertising than B2B companies.
4. Product type: Higher-margin products can justify higher ad spend.
5. Competition: Highly competitive markets may require more aggressive advertising.
6. Customer acquisition cost (CAC): Startups should ensure their CAC remains lower than customer lifetime value.
7. Cash flow: Available funds will impact how much can be allocated to advertising.

For short video applications like TikTok, Instagram Reels, or YouTube Shorts, marketing spend can vary significantly.

1. Growth stage: Early-stage apps often spend more aggressively, sometimes 30-50% of revenue or funding.
2. Competition: The short video space is highly competitive, potentially necessitating higher spend.
3. User acquisition cost: This varies but can range from $1-$5 per user in many markets.
4. Revenue model: Ad-supported apps may need to spend more initially than subscription-based ones.
5. Viral potential: Apps with high viral coefficients might spend less on paid marketing.
6. Market: Costs vary significantly between regions and countries.
7. Platform fees: Remember to factor in costs for app store placements.

A rough estimate might be 20-40% of revenue or funding for marketing in the early stages, adjusting based on growth and profitability over time. However, some successful apps have spent even more initially to gain market share.

. TikTok has become a popular platform for sharing financial advice and investment tips. Here are some key points to consider when creating investment-related content for TikTok:

1. Short-form content: TikTok videos are typically 15-60 seconds long. Focus on delivering concise, impactful information.
2. Visual appeal: Use eye-catching visuals, text overlays, and transitions to keep viewers engaged.
3. Educational content: Explain basic investment concepts, market trends, or financial literacy topics.
4. Stock tips and analysis: Provide brief insights on specific stocks or market sectors.
5. Personal experiences: Share your own investment journey, successes, and lessons learned.
6. Trending topics: Stay current with financial news and create content around trending investment themes.
7. Hashtags: Use relevant hashtags like #FinTok, #InvestingTips, or #StockMarket to increase visibility.
8. Consistency: Post regularly to build an audience and establish credibility.
9. Disclaimer: Always include a disclaimer that your content is for educational purposes only and not financial advice.
10. Engage with followers: Respond to comments and questions to build a community.

TikTok can be an effective way to reach a younger audience and share financial knowledge.

1. Keep it short and engaging: TikTok videos are typically 15-60 seconds long. Deliver your message concisely and appealingly.
2. Use visuals: Incorporate charts, graphs, or visual metaphors to explain complex concepts quickly.
3. Focus on trending topics: Stay up-to-date with current market trends and news to create timely content.
4. Simplify complex concepts: Break down investment terms and strategies into easily digestible information.
5. Use hashtags: Implement relevant hashtags like #FinTok, #StockTok, or #InvestingTips to increase visibility.
6. Provide actionable tips: Offer practical advice that viewers can apply to their own financial situations.
7. Be authentic: Share your own experiences and lessons learned to build trust with your audience.
8. Educate responsibly: Always include disclaimers about the risks of investing and encourage viewers to do their own research.
9. Engage with your audience: Respond to comments and create content addressing common questions.
10. Diversify your content: Cover various investment topics like stocks, bonds, real estate, or cryptocurrency to appeal to a broader audience.

You’re asking about the initial investment required for startups focusing on short video applications, similar to TikTok.

1. Development Costs:

• Mobile app development (iOS and Android): $50,000 – $250,000+
• Backend infrastructure: $20,000 – $100,000+
• Web version (if applicable): $25,000 – $100,000+

1. Server and Hosting:

• Cloud services (e.g., AWS, Google Cloud): $2,000 – $10,000+ per month

1. Legal and Compliance:

• Company formation: $500 – $5,000
• Patents and trademarks: $5,000 – $20,000
• Legal counsel for terms of service, privacy policy: $5,000 – $15,000

1. Marketing and User Acquisition:

• Initial marketing campaign: $10,000 – $100,000+
• Influencer partnerships: $5,000 – $50,000+

1. Team:

• Founders’ salaries (if taken): $50,000 – $150,000+ per year each
• Initial hires (developers, designers, etc.): $200,000 – $500,000+ per year

1. Miscellaneous:

• Office space (if not remote): $1,000 – $10,000+ per month
• Software licenses and tools: $500 – $2,000+ per month

Total estimated initial investment range: $500,000 – $2,000,000+ for the first year

Keep in mind that these are rough estimates and can vary widely based on factors such as:

• Complexity of the app
• Geographic location of the team
• Chosen tech stack
• Scale of initial launch
• Founders’ ability to take on multiple roles

Many startups in this space seek venture capital funding due to the high initial costs and the need for rapid scaling to compete with established players.