When you are a large sized broker, you have the benefit of momentum when it comes to your acquisition.
For these companies their existing clients will refer others and by virtue of their size alone, new traders will consider them more frequently. This brings with it the very fortunate position of having a constant flow of new clients to ‘subsidize’ your advertising in the short term. In theory, large size Brokers can therefore have more of a focus on the long term and do more ‘Brand Building’, amplifying the momentum effect even more over time.
Short vs. Long-Term Focus
New Trading Ideas, Multicharts, and Live Widgets with SimpleFXGo to article >>
On the other hand, being a marketer at a mid or small -sized broker usually means you have to have a constant short-term focus. The cost per acquisition cannot be subsidized by the strength of your brand and the momentum that a large client base brings with it. And so the fundamental difference between these types of companies is just that; one usually focuses on short-term actions only, the other has more of a long-term focus.
Long-term focus strategies are things like high impact, awareness driving advertising, creative campaigns focused on soft factors, large scale events, public relations, content marketing and so on. Short-term strategies are product advertising, RTB and PPC, low cost DM advertising, affiliate marketing and others.
So far the theoretical point of view – in practice we do see large sized companies only focusing on short term tactics and the other way around, but when it comes to what these companies should be doing; probably a mixture of tactics with more of a focus on either short or long term tactics (depending on the type of company) is the right thing to do.