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Demand Creation vs Capture in 2025: The New Landscape of Customer Acquisition

Writer: Matt McDougallMatt McDougall

Demand Creation vs Demand Capture


Five years ago, the playbook was simple: pour money into Google Ads, optimize landing pages, and watch customers roll in. Today? Those same clicks cost significantly more, AI assistants are reshaping search, and traditional demand capture is getting harder by the day.

While some startups struggle, others thrive. The difference? Understanding whether you're capturing existing demand or creating new demand.


Consider an accounting software company. They can capture existing demand by targeting businesses actively searching for solutions. But in Uber’s early days, people weren’t searching for "ride-sharing alternatives." They had to create demand.


Getting this wrong is expensive. Some startups burn through funding trying to capture non-existent demand, while others waste time trying to create demand when they could just capture it more effectively.


In This Post, We'll Cover:


  • How demand capture is evolving amid rising costs and AI-driven search

  • Strategies to build demand when there’s no existing market

  • How to determine which approach fits your situation


Demand Capture: Search is Changing


The old playbook of ‘spend on Google Ads and watch the leads roll in’ is getting more expensive—and less effective. The average cost-per-click (CPC) for Google Ads has been rising, with some industries seeing double-digit CPC increases year over year​. At the same time, ad click-through rates (CTR) have declined, forcing marketers to spend more just to maintain visibility​. 


Search Behavior is Shifting


People are:


This doesn't mean search is dead - it means adapting. Modern demand capture involves:


  1. Leveraging peer trust. A single Reddit thread about your product can drive more leads than thousands in ad spend.

  2. Optimizing for AI search. When someone asks ChatGPT, "What's the best tool for X?", you want to be included.

  3. Prioritizing video content. Product reviews and comparisons influence late-stage buyers.


What's Actually Working Now


Successful demand capture strategies involve multiple channels:


Search Ads Need More Precision

  • Target very specific pain points ("quickbooks automation error fix")

  • Bid on competitor comparison terms

  • Use negative keywords to block non-buyer intent (e.g., 'free', 'open source')


But the real wins are coming from a wider view of demand capture:


Getting into AI Results

  • Building comprehensive product comparisons that AI models can reference

  • Creating clear, factual content about your product's capabilities

  • Maintaining accurate information on key review sites that AI assistants pull from


Leveraging Review Sites

  • Actively managing profiles on G2, Capterra, and TrustRadius

  • Encouraging reviews at the right moment in the customer journey


Video: The Overlooked Demand Capture Channel

  • Product demos rank well in search results and often convert better than text content

  • Decision-makers are increasingly using YouTube to evaluate tools

  • Technical tutorials and integration guides in video form are becoming key resources for buyers doing due diligence


The winning approach combines:

  • Short demos (2-3 minutes) that solve specific problems

  • Detailed tutorial content that shows depth and builds trust

  • Customer story videos that demonstrate real-world impact


The key is understanding that video isn't just about awareness - it's a crucial part of the buying process. When someone searches for "[Your Product] vs [Competitor]" or "How to use [Your Product]", video results often appear at the top of the search page.


Beyond Traditional Channels: Where Else Demand Lives

  • Industry-specific forums (Slack, Discord, Reddit)

  • Expert roundups and recommendation lists

  • Technical documentation that ranks for specific use cases


Demand Creation: Building Markets From Scratch


Capturing demand is easier—but what if people aren’t searching for your solution yet? Creating demand means making people realize they have a problem worth solving.


Social Media That Actually Works

Forget spray-and-pray posting. The landscape is shifting, and each platform has its own dynamics:


  • Best for: B2B tools, especially those selling to mid-level and senior decision-makers

  • Wins: Posts showing concrete results, breaking down industry problems

  • Avoid: Generic "thought leadership" and motivational fluff


  • Best for: Deep tech and developer tools

  • Wins: Technical deep dives, authentic community engagement

  • Avoid: Obvious marketing—Redditors hate it


  • Best for: B2C, humanizing B2B

  • Wins: Behind-the-scenes, educational content

  • Avoid: Corporate-style content that feels inauthentic


The "Twitter Alternative" Landscape

  • Twitter/X: Still viable but has platform risks

  • Threads: Growing professional audience, but engagement still developing

  • Bluesky: Strong tech community and rapidly growing user base, now open to all users

  • Best approach: Test across platforms while building your own direct channels (email, community) as backup


The key isn't being everywhere - it's picking one or two platforms where your potential customers actually spend time, while staying aware that these platforms can change rapidly. 


Beyond Social: Creating Real Demand


While social media gets all the attention, the most effective demand creation often happens elsewhere:


Community Building That Works


Building Referral Networks

  • Partner programs that focus on value creation, not just commission

  • Building relationships with adjacent service providers

  • Creating certification programs that actually mean something

  • Making it easy for happy customers to become advocates


Content That Shifts Perspectives

  • Original research that reveals hidden problems

  • Content that helps people rethink their current approach

  • Tools and templates that make new ways of working concrete

  • Events that bring together people facing similar challenges


The goal of demand creation isn't just awareness - it's changing how people think about their problems and what's possible.


Making the Right Choice: Capture vs Creation


The biggest mistake isn't picking the wrong strategy - it's not being clear on which one you need. 


Choose Demand Capture When:

  • People are actively searching for solutions like yours

  • You have a clear competitor whose customers you can target

  • Your product fits into an existing category

  • You can explain what you do in terms people already understand


Choose Demand Creation When:

  • You're solving a problem people don't know they have

  • You're creating a new product category

  • The old way of doing things is so ingrained that people don't question it

  • Your solution requires a mindset shift


How to Test Cheaply

  • Start small ($100-500) on each channel

  • Look for early traction before scaling up

  • Test capture first—it’s easier to measure

  • Listen for organic conversations about your space


Signs You're On The Wrong Path:

  • High ad spend but low-intent leads

  • Views with no conversions

  • Spending too much time explaining basic concepts

  • Long sales cycles with heavy education required

  • High customer acquisition costs that aren't improving


The Real Test: What Happens Next


The line between demand capture and creation is blurring, and the best startups do both—capturing demand while steadily creating new markets through education and community.


But you can't do everything at once. If you're just starting out:


  • Existing market? Capture demand better than competitors

  • New category? Educate, build community, create demand


The best marketing isn’t just about getting attention—it’s about creating understanding. The platforms will change, but knowing whether to capture or create demand will always be the foundation of a successful growth strategy.


At LaunchWave Consulting, we understand the complexities of this evolving landscape. We help early stage B2B startups navigate the blurred lines between demand capture and creation, crafting data-driven strategies that align with your specific market and growth goals. Whether you need to refine your search tactics, build a thriving community, or create content that shifts perspectives, LaunchWave is your partner in building a sustainable customer acquisition engine. Contact us today to explore how we can help you capture demand, create markets, and achieve lasting success.

 
 
 

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