When and how to invest in new acquisition channels | Adam Grenier (Uber, MasterClass)

Sep 15, 2022 Episode Page ↗
Overview

Adam Grinier, former Head of Growth at Uber and VP of Marketing at Masterclass, discusses strategies for evaluating emerging acquisition channels, the evolving "growth CMO" role, and candidly shares insights on combating burnout and depression in the tech industry.

At a Glance
24 Insights
1h 9m Duration
13 Topics
6 Concepts

Deep Dive Analysis

Adam's Career Background and Professional Philosophy

Applying Improv Principles to Business and Collaboration

Framework for Evaluating New Acquisition Channels

How Long to Test and Invest in New Channels

Emerging Platforms Worth Exploring Now

When to Broaden Your Audience Beyond Early Adopters

Defining and Understanding the Growth CMO Role

Why Marketing Leaders Should Learn Product Development

Red Flags When Hiring a Marketing Leader

Personal Journey with Depression and Burnout

Tools and Strategies for Mental Health

Identifying Signs of Burnout

Adam's Future Career Focus

Yes And (Improv Principle)

In improv, this principle means accepting what your partner says ('yes') and then adding to it ('and') to build on the scene. It fosters progress and collaboration by encouraging participants to build off each other's contributions rather than denying them.

Gift of Details (Improv Principle)

This improv concept emphasizes providing specific, rich details in a scene to give more material to work with. In a business context, it means offering precise information to open up more opportunities for discussion and problem-solving.

Channel DNA (Emerging Channels)

When evaluating new acquisition channels, 'Channel DNA' involves understanding where the channel is in its growth trajectory, the inherent risks of early adoption, and its monetization strategy. Aligning with a channel's monetization can provide a strategic advantage.

Company DNA (Emerging Channels)

This refers to a company's internal characteristics relevant to exploring new channels, including its risk profile, capacity to be a first-mover, available staffing, and current channel mix. It helps determine if a company is well-suited for risky channel exploration.

Growth CMO

An evolving marketing leadership role characterized by a data-driven, iterative, and experimentation-focused approach. This leader deeply integrates with product development, moving beyond traditional campaign-centric marketing to drive consistent, compounding growth.

Product Market Fit (Dynamic)

The concept that product-market fit is not static but changes with market conditions. Companies must continuously re-evaluate and adapt, especially during economic shifts, assuming they may no longer have fit in a changed market.

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How can improv skills improve professional collaboration and creativity?

Improv teaches adaptability, teamwork, and building on others' ideas ('yes and'), which fosters better rapport and more productive cross-functional solutions. The 'gift of details' also enhances communication by providing richer context for ideas.

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How should companies decide whether to invest in new acquisition channels?

Companies should assess the overlap between customer needs, company goals, and the channel's strengths, understand the channel's DNA (trajectory, monetization), and evaluate their own company DNA (risk profile, resources, existing channel mix).

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What is a 'Growth CMO' and why is this role becoming important?

A Growth CMO is a data-driven, iterative, and experimentation-focused marketing leader who deeply integrates with product development. This role is crucial for product-led companies to ensure marketing efforts compound effectively and adapt to rapid market changes.

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What are red flags when hiring a marketing leader for a startup?

Red flags include a lack of comfort with chaos, unwillingness to perform hands-on work they might have done earlier in their career, and a reduced adaptability or openness to change and experimentation.

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What is the difference between burnout and depression?

Burnout often manifests as exhaustion and a disinterest in work-related challenges, while depression is a deeper lack of motivation that impacts broader life activities, such as hobbies and social engagement, not just work.

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What tools and strategies can help with mental health challenges like depression and burnout?

Effective strategies include therapy, transparent conversations with trusted friends and partners, meditation (using apps like Waking Up or Aura), and maintaining a healthy diet and exercise routine. Company benefits often cover therapy resources.

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How long should a company test a new acquisition channel before deciding to scale or stop?

Generally, a company should not let testing bleed past a quarter. Good directional signals can often be found in a month or less, especially for channels requiring less upfront content or financial investment.

1. Re-evaluate Product-Market Fit

When economic conditions shift, assume your existing product-market fit is obsolete and proactively re-evaluate your strategy, as the entire customer base may have fundamentally changed.

2. Seek Therapy for Deeper Issues

Engage in therapy not just for burnout, but to uncover deeper personal motivations and underlying issues, which can provide a healthier perspective on work and life.

3. Distinguish Burnout From Depression

Learn to differentiate burnout (exhaustion specific to work) from depression (broader lack of motivation impacting personal life) by observing if your motivations outside of work are also affected.

4. Cultivate Transparent Support Network

Build a network of trusted friends with whom you can be transparent about mental health challenges, creating safe spaces for mutual support and shared experiences.

5. Utilize Company Mental Health Benefits

Actively review your company’s benefits and healthcare provider offerings, as many provide coverage for therapy and other valuable mental health resources.

6. Integrate Meditation for Well-being

Incorporate meditation into your routine, using resources like Waking Up or Aura, to learn breathing techniques and enhance mental well-being.

7. Monitor Diet and Exercise

Pay attention to changes in diet (e.g., increased snacking) and exercise habits as potential indicators of mental health struggles, and prioritize healthy living to improve overall well-being.

8. Recognize Burnout: Decreased Adaptability

Identify burnout when your adaptability and openness to change or new ideas significantly decline, leading to resistance rather than a willingness to explore.

9. Align Channel Strengths with Needs

When evaluating emerging acquisition channels, first ensure the channel’s inherent strengths align with your customer’s needs and your company’s growth objectives.

10. Assess Channel DNA & Monetization

Evaluate an emerging channel’s growth trajectory and monetization strategy, accepting the risks of early adoption and seeking alignment with their revenue model for a strategic advantage.

11. Evaluate Company Risk Profile

Before investing in new channels, assess your company’s risk appetite for being a first mover and confirm you have a solid foundation in established channels like Google and Facebook.

12. Start Channel Tests Minimally

Begin testing new acquisition channels with minimal resources (e.g., a fraction of one person’s time) and only scale up if early momentum or “magic” is clearly observed.

13. Set Quarterly Test Time Limits

Limit the exploration of any new acquisition channel to a maximum of one quarter; if no clear directional improvement or interesting signal emerges, put it on hold.

14. Define Success Metrics Early

Before initiating an emerging channel test, clearly define specific success metrics tailored to the channel’s nature (e.g., room size growth, trackable clicks).

15. Understand Broad Audience Differences

Recognize that your initial early adopters are often vastly different from your broader target audience, and dedicate time to understanding these differences to achieve sustainable product-market fit.

16. Learn Agile Product Development

Marketing leaders should study agile product development methodologies to enhance their team’s operational efficiency and foster stronger collaboration with product organizations.

17. Hire Leaders Comfortable with Chaos

For early-stage startups (Series C or below), prioritize marketing leader candidates who demonstrate comfort with chaos, adaptability to rapid change, and a willingness to engage in hands-on tasks.

18. Evaluate Marketing Leader’s T-Shape

When hiring a marketing leader, identify their “T-shaped” career (deep specialization and broader skills) and assess their plan for addressing areas outside their core strength, especially product collaboration and data.

19. Adopt “Yes, And” Collaboration

Apply the “yes, and” principle from improv in cross-functional team interactions to foster better rapport, build constructively on ideas, and avoid halting progress.

20. Practice “Gift of Details”

Provide specific, rich details in your communication to offer more context and substance, enhancing creativity and enabling others to build more effectively on your ideas.

21. Take Improv Classes

Enroll in improv classes to develop valuable skills like adaptability, teamwork, and experimentation, even if you have no intention of pursuing improv professionally.

22. Seek Accountability for Growth

Publicly state your goals for skill development and ask your team to hold you accountable, encouraging open feedback and a culture of continuous improvement.

23. Treat Podcast Ads as Radio

Approach podcast advertising by focusing on program fit, personalization, and consistent repetition, rather than expecting immediate direct-response results like other digital ads.

24. Embrace “Me as a Service”

Leaders should identify their unique strengths and passions, then explore “me as a service” models like advising, investing, or coaching to leverage their experience in flexible, impactful ways.

Start by assuming you no longer have product market fit. Because you had product market fit in a different market. It's a different market now.

Adam Grenier

The gift of details... if you give somebody like really specific details about something, like it gives like so much more meat to be able to work off of.

Adam Grenier

If your CMO and your product leader aren't married at the hip, you're just missing out on just tons of opportunity.

Adam Grenier

Product is no longer a part of marketing, but it's actually like they're married at the hip. It's actually, they're all, they're one in the same.

Adam Grenier

When you're looking for ways to like minimize the challenge or the opportunity, I think that's like a pretty good signal that like, there may be more burnout than just exhaustion.

Adam Grenier

Framework for Evaluating Emerging Acquisition Channels

Adam Grenier
  1. Understand Overlap: Determine if there's an overlap between customer needs, company goals, and the channel's core strengths (e.g., audio-first for Spotify and Clubhouse, hyper-targeted for influencer marketing).
  2. Analyze Channel DNA: Assess the channel's stage in its trajectory (early vs. established), the inherent risks of early adoption (e.g., product changes, lack of tracking), and its monetization strategy to identify alignment opportunities.
  3. Assess Company DNA: Evaluate your company's risk profile, capacity for being a first-mover, available staffing, and current channel mix to ensure it's a suitable time and resource allocation for exploration.
5%
Success rate for brand new emerging channels Percentage of the time new, brand-spanking-new channels work or are worth the effort early on.
15 years ago
Adam's experience buying podcast ads Indicates podcast advertising is not a new channel, but has evolved.
150 people
Adam's team size at Uber Refers to the size of Adam's growth marketing team at Uber.
500 GMs
Number of General Managers (GMs) at Uber Refers to the number of city GMs Adam's central team supported, often calling him when spend was too high.
24 months
Traditional marketing planning horizon Contrasts with the agile, iterative approach of a Growth CMO.
3 weeks to produce and $20,000 to make
Time and cost for video content production (example) Used as an example to illustrate how upfront investment can influence testing duration for new channels.
6-7 years
Adam's investing experience Duration Adam has been investing, recently joining Andreessen's scout fund.