Surviving the Summer Doldrums

According to Merriam-Webster, "doldrums" means a spell of listlessness, despondency, or a period of inactivity, stagnation, or slump. In nautical terms, it refers to a calm part of the ocean near the equator. In online advertising, it describes the period from Memorial Day to Labor Day when people are outside, not engaging with online ads.

Running an early-stage advertising company means relying on experience rather than historical data for future planning. Last Summer, the doldrums nearly put Wellput out of business. We started with 18 advertisers, $70k in MRR, and 8 FTEs, but ended with 13 advertisers, $53k in MRR, and 5 FTEs. We reduced payroll and took a bridge loan to survive. Morale was low, and I questioned my future as I approached 50.

We survived thanks to the hard work, dedication, and support from teammates, investors, advisors, family, and friends. I am deeply grateful.

Finding new advertisers during the Summer doldrums is challenging. Q3 budgets are mostly allocated, and Q4 budgets will be set in late August and September. The key is to retain existing advertisers and use the slow demand to access new publisher inventory. Last Summer, we lost over 30% of our advertisers due to poor performance. We spent the next six months improving control over spend and performance.

If you are beginning to experience the doldrums this Summer, know you are not alone. Most publishers, regardless of vertical, size, and quality, are seeing a slowdown in demand this Summer. At Wellput, we will focus on advertiser performance and retention, improving the publisher experience, and preparing for a strong Q4.

Remember, tough times are part of the entrepreneurial journey. Not everyone is cut out for this. Stay resilient, use the slower periods to refine your strategies, and keep pushing forward. Success will come to those of us who can weather not only the storms, but also slack sails, and emerge stronger.