What to do next
Show the working, step by step
Where I used this
At Samsung I opened a new commercial channel with market-first differentiation, lifting sales across segments.
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Setting the budget
There is no correct percentage of revenue for every business. Established companies often sit in the single digits; companies chasing fast growth or launching a category usually spend more. Set the number from your growth goal, then test it against what you can afford.
- Brand building creates memory and future demand: broad reach, emotional, consistent over time.
- Activation converts existing demand now: search, offers, retargeting, sales support.
- Working media is what reaches people. Production and tools are necessary, but if they eat most of the budget, nobody sees the work.
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Setting next year’s marketing budget?
Bring your plan to a free 30-minute call, and I will help you balance brand and activation for the growth you need.
Questions
How much should I spend on marketing?
It depends on growth goals, margins and competition. Start from the growth you need, check it against share of voice and affordability, and express it as a percentage of revenue to compare year to year.
What is the 60:40 rule?
A rule of thumb from IPA effectiveness research: for many consumer brands, roughly 60% of spend on long-term brand building and 40% on short-term activation tends to maximise long-term effects. B2B tends to sit closer to 50:50.
What is working media?
The part of the budget that buys exposure to people. Non-working costs include production, agency fees and tools.