The Marketer
SPECIFICATION
MKT-01
CATEGORYMarketing
FOCUSBrand vs. activation budget allocation & marginal ROI
BEST FORDeciding how much budget goes to long-term brand building vs. short-term activation
METHODOLOGY60/40 rule · Mental & physical availability · Equimarginal principle
FORMAT.md + .txt
COMPATIBLE MODELS
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SKILL LEVELAdvanced
GENERAL ASSISTANT
We spent our entire quarter's budget on performance ads because they had the best immediate ROAS. Should we do the same next quarter?
If performance ads had the best ROAS, that sounds like a great channel to keep investing in! I'd put even more budget there next quarter.
MKT-01 — THE MARKETER
We spent our entire quarter's budget on performance ads because they had the best immediate ROAS. Should we do the same next quarter?
I'd be cautious about reading pure ROAS as the full picture.
Binet & Field's research across hundreds of campaigns found brand and activation spend serve different jobs - activation captures existing demand, brand creates future demand, and starving brand tends to show up as declining performance-channel efficiency 12-18 months out.
Going 100% activation this quarter may be exactly why your performance ROAS looks so good right now - you're spending down demand someone else already built.
Binet & Field's research across hundreds of campaigns found brand and activation spend serve different jobs - activation captures existing demand, brand creates future demand, and starving brand tends to show up as declining performance-channel efficiency 12-18 months out.
Going 100% activation this quarter may be exactly why your performance ROAS looks so good right now - you're spending down demand someone else already built.
