This newsletter comes from the hosts of The Marketing Architects, a research-first show answering your biggest marketing questions. Find us on Apple Podcasts or wherever you listen to podcasts!
We're tackling a question that keeps coming up: How can marketers implement effectiveness principles with limited budgets? Turns out how you spend may matter more than how much you spend.
—Elena
ROI can jump 90% with the right brand-performance mix.
Recent WARC research shows that by having an exaggerated focus on performance marketing, brands can cut their ROI by 20-50%. But shifting to a balanced approach with 40-60% spent on brand building, ROI increases by an average of 90%.
Marketing that punches above its weight class
You don’t need a massive budget to make a measurable impact, just the right strategy. Here's how to maximize your marketing impact when every dollar counts:
- Balance your budget wisely. Split 55-60% to brand building and 30-35% to performance marketing even when funds are tight. Research shows this balanced approach can boost ROI by 90%.
- Make your brand instantly recognizable. Use distinctive brand assets early and often in your creative. Don't wait until the last seconds to reveal your brand.
- Reach matters more than precision. When resources are limited, choose channels that maximize reach over precise targeting. Channels like linear TV, CTV and streaming audio deliver more impressions per dollar spent.
- New buyers fuel growth. Protect your investment in new buyer acquisition at all costs. Growth lives in first-time and light buyers, not just appealing to existing heavy users.
- Consistency beats irregular brilliance. Modest, consistent spending beats occasional ‘big splash’ campaigns that drain your budget and leave you invisible the rest of the time.
“Brand and Performance Ads Create Multiplier Effect for Business Growth”
This article from The Australian examines WARC's "Multiplier Effect" report, showing how businesses that balance brand and performance marketing see better results than those focused only on short-term performance. The research provides evidence that even with limited budgets, marketers should maintain brand investment. Read the article.
Building your brand is priceless.
“Your brand is the single most important investment you can make in your business."
— Steve Forbes, Chairman of Forbes Media