The balance between performance and brand-based activities

60/40 40/60 80/20 20/80

To most, these numbers are pure gobbledygook but to a marketer they represent the most important equation:

the balance between performance and brand based activities.

Prevailing wisdom suggests a 60/40 split between brand and performance is optimal and is rarely contested.

However, it is not as clear cut and in fact, Les Binet and Peter Field, caution against talking in absolutes but rather suggest this is roughly the right blend.

The reality is every brand will need to adjust for their own set of circumstances.

So don’t be blindsided by the headlines.

Here is a case in point:

ASOS admits they grossly under-invested in brand leading to a loss before tax of £31.9m for 2022 – down 118% versus 2021. 80% of their investment was in performance marketing which eroded their brand value leading to excessive price discounting. They are looking at reversing this.

Cazoo on the other hand, to achieve profitability is reversing their brand campaigns to focus more on performance activities to two thirds of their budget.

Both driving towards profitability by taking a different route.

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