Marketing Budget Allocation

“Marketing Attribution” — new cartoon and post In the early 1900s, Philadelphia merchant John Wanamaker famously said: “Half the money I spend on advertising is wasted; the trouble is I don’t know which half.” In a way, Wanamaker is the grandfather of marketing attribution — the science of giving credit to each marketing touchpoint that a customer was exposed to before a purchase. More than ever, marketers are pushing to understand what worked and what didn’t so they can invest in tactics that truly drive sales. With the rise of data-driven marketing, marketers aren’t in the dark as much as they were in Wanamaker’s day. But it’s still murky, particularly when trying to capture the impact of long-term brand building that is harder to directly link to sales. How much credit to assign to a TV ad versus an email offer versus an in-store promotion? The easiest (and laziest) approach is “last-click attribution”, which gives 100% of the credit to the final marketing tactic before the sale. The easy measurability of “last-click attribution” helped drive a hard swing to short-term sales activation in the digital marketing era. Often at the expense of long-term growth. Les Binet and Peter Field wrote the seminal book on this pressure to be short-termist in “The Long and the Short of It” in 2013. They advise that it shouldn’t be one or the other. Marketers should instead consider a 60/40 rule in their advertising plans: 60% focused on brand building and 40% on sales activation. As Les Binet once said in an interview: “The addiction to the short-term is not a new phenomenon, but it has got a lot worse. One of the problems is that for short-term activities, you get immediate feedback: responses, clicks, or short-term sales. “If you are a marketer who’s spending money and nervous about what you’re getting for your money, you can immediately see that this stuff pays back. It’s become easier and easier to see these short-term effects, because we have more granular short-term data that comes through faster and faster … “All businesses now have short-term metrics, which can distract them from long-term growth. I think that’s the real reason why business is becoming short-termist. It’s not quarterly reporting. It’s not the short tenure of marketers. It’s the data.” >>>>> To sign up for my weekly marketoon email newsletter, click here: https://lnkd.in/g9DBM6tD For related cartoons and all the links in this post, click here: https://lnkd.in/gFu-d_J9 #marketing #cartoon #marketoon

A very easy way to improve your Amazon ads efficiency by at least 10% Let’s say you’re spending ₹4–5 lakhs/month on Amazon ads. Your ACoS looks okay. Conversion rate seems fine. But your gut tells you—you’re still wasting some money on irrelevant traffic You’re not wrong At Atomberg, we had found that some of our Amazon spend was going toward search terms that had no business seeing our ads: - “cheap fan” -“rechargeable fan” - “usb fan under 1000” None of these users were in-market for a ₹3,000+ BLDC ceiling fan. But we were still showing up. And paying for those clicks. And it’s not just us. I’ve seen 6–7 brands' Amazon ad accounts across categories over the last few years—same problem, every single time The fix? N-gram analysis Takes less than an hour. You don’t need to be a performance marketing expert. But the results compound What’s N-gram analysis? It’s breaking down every search term into its word components—1-grams, 2-grams, 3-grams—and then identifying patterns that consistently drive waste… or conversion. Example: “cheap rechargeable fan for hostel room” turns into: 1-grams: cheap, rechargeable, fan, hostel, room 2-grams: rechargeable fan, hostel room 3-grams: fan for hostel, etc. When you do this across all your search terms, you start seeing the real picture. Why this matters more than just checking your search term report: Search terms ≠ keywords a) One keyword can trigger 100s of different queries. Some convert. Most don’t. You need to find the patterns. b) Waste is diluted across low-volume terms. Maybe “rechargeable fan for hostel” spent ₹300. You ignore it. But what if 12 other queries with “rechargeable” spent ₹6,000 in total with zero conversions? c) Long-tail is infinite. N-grams are finite. You can’t negate every bad search. But you can block the core terms—“cheap”, “usb”, “mini”—once and be done with it. d) It helps you scale campaigns too. You can find goldmine phrases like “white ceiling fan”, “silent BLDC fan”, “fan for living room”—with 5x+ ROAS. Those became exact match campaigns What you should do: a) Pull last 3 months of search term data b) Break them into unigrams, bigrams, trigrams c) Create a pivot with spend, orders, ROAS by N-gram d) Negate high-spend, low-conversion N-grams (e.g., “cheap”, “rechargeable”) e) Boost high-ROAS ones (e.g., “bldc”, “ceiling fan white”) f) Add exact match campaigns g) Rinse and repeat monthly Try it. Guaranteed to improve efficiency at whatever scale you are operating If you want to read an expanded version of the post, link is in the first comment

CFO: What’s a good ROAS target for 2025? CMO: The lower, the better. CFO: That doesn’t make sense. Why would we aim for lower ROAS? Isn’t that the opposite of what we’re trying to do? CMO: Not at all. ROAS obsession is where so many brands get it wrong. By focusing on short-term returns, they build a growth model that depends entirely on spending money to acquire customers. And that’s not sustainable. CFO: But don’t we need to acquire customers? Isn’t that the goal? CMO: Yes, but the goal shouldn’t be to constantly buy customers through paid ads. The real objective is to build a brand so powerful and resonant that people come directly to us when they’re ready to buy. No ads, no promotions—just a deep emotional connection to our brand that puts us top of mind. CFO: That sounds great in theory, but doesn’t building that connection mean spending more with lower returns? CMO: It does in the short term. Here’s the deal: at any given time, only about 5% of your audience is actively shopping for what we sell. For that 5%, ads focused on product, price, and promotion perform well. But for the other 95%? Those ads don’t resonate because they’re not in-market. That’s where branding comes in. CFO: And branding means advertising to the 95% who aren’t ready to buy? CMO: Exactly. The downside is that this effort will show lower ROAS because it’s not driving immediate conversions. But here’s the fantastic news—reaching that 95% is astronomically cheaper because they aren’t being bid on by every competitor in the category. CFO: So what’s the benefit of reaching them when they’re not shopping? CMO: When they’re not in-market, they’re less focused on rational factors like price and features. That’s the perfect time to build an emotional connection. If you connect with them then, by the time they’re in the 5%, they already know, trust, and want your brand. They don’t even shop around. CFO: You’re saying this makes us harder to compete with? CMO: Exactly. Competitors can match our price, promotions, and even features. But they can’t replicate our brand. A strong brand creates a value proposition that draws customers directly to us, bypassing the whole ad ecosystem entirely. CFO: So what’s the long-term play here? CMO: By focusing on branding and building this connection with the 95%, we’re creating future-proof growth. It’s not about immediate ROAS—it’s about turning our audience into loyal customers who seek us out on their own. That’s how we reduce dependency on paid acquisition and build a scalable, profitable business. CFO: Alright, I’m starting to see the bigger picture. Let’s talk about how we balance the short and long term in the budget. And next time, lead with this when you say “lower ROAS.” CMO: I like to get you all worked up sometimes. Lets me know I’m truly alive.

My client fired their entire SDR team on Tuesday By Friday, their pipeline had grown by 60% This sounds impossible It's not After auditing 50 B2B sales organizations over 10 years, I've uncovered the most expensive myth in modern selling: → The belief that MORE activity at the TOP of your funnel will fix conversion problems at the BOTTOM Let me share what actually happened: This mid-market software company was spending $350,000 annually on their 4-person SDR team - 100+ cold calls per rep daily - 17 meetings booked weekly - "Incredible metrics" according to leadership - But their close rate? A devastating 1.2% The VP of Sales was convinced they needed MORE outreach, MORE automation, MORE top-of-funnel I suggested something different: pause all prospecting for 7 days Instead, we had their account executives do something radical - engage with the 215 prospects already in their pipeline who'd gone cold after initial meetings Using a framework we developed: - 65 prospects responded within 24 hours - 41 booked follow-up meetings - 23 re-entered active buying cycles - 6 closed within 14 days (total value: $212K) The shocking revelation? - Their pipeline wasn't empty - It was overflowing with neglected opportunity. This company didn't have a lead generation problem. They had a lead nurturing catastrophe. By reallocating resources from mindless prospecting to strategic engagement, they've now: - Reduced CAC by 60% - Shortened sales cycles by 30% - 2x their close rate The counterintuitive truth: Sometimes the fastest path to growth is to stop chasing new opportunities and start converting the ones you've already earned. What percentage of your marketing and sales budget is focused on prospects who've already shown interest vs those who haven't? That ratio reveals everything about your future growth trajectory P.S. If you need help with your sales, send me a message

There’s no faster way to tank a company than leaning into paid marketing too soon. Anyone who says otherwise either makes a living off your paid marketing spend or has been lucky enough to live through an outlier scenario. So, Sarah Charlton (who led self-serve biz @ Asana) and I created a decision tree to help you determine when it's the right time to invest in paid marketing. First, you won’t find PMF through paid marketing - that’s a fallacy. Second, your landing pages need to be ready to handle this precious (and expensive) traffic, not let it go to waste. Third, aim to reach 10,000 monthly visitors organically - through marketing channels or virality. This builds predictable, sustainable, and competitively defensible long-term growth (and not an addiction to VC money to make google richer). Then, make sure your data and tech are in place so you can actually track where your dollars are going (harder than it seems!). Finally, be prepared to blow ~$75K just to figure out what works for you. More details on each point, as well as some common paid-marketing pit-falls on my blog: https://lnkd.in/enemEaCP #growth

Your influence in the board room and executive team is 90% communication with measurable examples. The words you use can make or break you. Naturally, I've been compiling a list of "instead of saying this, say this" with measurable results. Many are based on my gotcha moments where I've failed miserably at explaining what marketing does. I've said things like: “We’re increasing brand awareness.” “Our demand generation efforts are working.” “We’re improving our SEO strategy.” Every marketing leader has said some version of these. The problem? Nobody in the boardroom or executive team cares about (or understands) marketing buzzwords. They care about revenue, efficiency, and business impact. Let's flip the script. I've compiled a list of marketing-speak and translated these statements into terminology a room full of non-marketers would understand. And bonus, I've included the right metrics to back them up. Example: 🚫 Don’t say: “We’re generating a lot of leads.” ✅ Say this instead: “We’re bringing in people who are actually interested in buying.” 📊 Measure it with: Organic Traffic, Demo Requests, MQL-to-SQL Conversion Rate I put together a full table of these translations and a template so you can ensure your marketing efforts land in the boardroom. I'll share the list and other communication tips this weekend in my newsletter, but if you just want the table. Let me know. Drop a “TABLE” in the comments, and I’ll send it over.

2026 planning starts now. If I was the CRO of a $50M business looking to grow 30% next year (i.e. add $15M of net new ARR to end the year at $65M) here’s exactly what I’d do: ASSUMPTIONS: - Selling into SMB and Mid-Market but with a small Enterprise sales effort. - 82% Gross Revenue Retention and 95% Net Revenue Retention (NRR). - A CS team that has renewal targets but expansion is handled by the AEs. - New business team is hitting quota in total but unevenly distributed. 1. Stress Test the Targets and the Revenue Model Look at 2025 growth and compare to total investments in sales and marketing focused on new business growth to understand CAC to ARR growth. Confirm the ratios map to the budget — e.g. you’re not being asked $15M in growth on the *same* CAC investment.    Assume CAC will degrade by 10% and ensure your fully weighted S&M investment is Pro-Rata + 10% to the growth. We’re looking for rough confirmation we’re not being asked to perform miracles. 2. Stress Test Pipeline Coverage and Marketing Performance Ensure we understand Lead to Closed Won Cycle and we have coverage. If we have a 3 month sales cycle and it’s mid-September, we’re on track. But if we wait much longer we’ll be drifting into Q1 and will immediately be behind. As usual, we’re looking for 3-5x pipeline coverage. 3. Understand Demand Generation Channels Word of mouth is not (really) a channel. It’s a “channel” if you can put $ behind it and the more you spend the more you get. If we have our basic framework in place, it’s time to get out the precision tools, modeling CAC, retention, and LTV by *investable channel*. At higher ACVs, we put muscle behind in-person travel, ABM, and targeted field marketing. At lower ACVs, we need investments in data and enrichment to enable effective paid acquisition and AI-enabled inside reps. 4. Review Gross and Net Revenue Retention targets If nothing changes with NRR, we are looking at $47.5M end of year run-rate. Let’s figure out if we can push NRR up to 105%, lowering the burden on new business. How? - Segment accounts by Red, Yellow, Green - Assign commercial support to CS to expand Green through more seats, new products, or deeper usage. Take one high performing AE and turn them into an Account Management expansion focused hunter whose sole job is converting upsells. 5. Drive Our AEs with Great Variable Comp and Route Our Best Leads to Our Best People Top sellers are 5-7x more productive than average sellers. And sellers with unlimited upside and generous accelerators, do better. I'd design our comp plans to pay for over-performance and route our leads to our best people. Target 80%+ quota attainment and be willing to part with the bottom 20%.  Get confidence every lead we send to the sales team closes at a higher rate with a higher deal value. The last step? Pop bottles because we hit our number 🍾 P.S. Want to learn how to do this as a scaleup CRO? Pavilion's CRO School starts 10/2. DM me to join.

Early in my career, a colleague from P&G left for a startup. The pay was nearly double. The decision seemed obvious. But when I mentioned this to my boss, his response made me changed how I viewed career growth: “In the first third of your career, don’t chase money—chase knowledge. You’ll leverage that better in the next third to make real money.” At first, it sounded idealistic. But over time, I saw a pattern among top marketers: They optimized for learning, not just earning, in their first five years. Why this matters: [1] The Compound Effect of Skill Stacking I’ve seen P&G marketers turn down high-paying social media roles to master brand fundamentals first. Today? They’re leading global brands while their peers are still executing tactics. [2] The “Career Equity” Principle That startup role offering double the salary? Look closer. Are you building equity in yourself (strategic thinking, leadership, innovation) or just executing someone else’s strategy? [3] The Learning-to-Earning Ratio Every marketing leader I know followed this trajectory: Years 1-5: Learn intensively Years 6-10: Apply & grow Years 10+: Exponential career acceleration “But I need the money now.” I get it. I’ve been there. But consider this: A ₹10 lakh salary bump today vs. learning that could unlock ₹50 lakh+ annually in a few years. “But I might fall behind.” Look at any CMO interview in AdWeek or Marketing Week—nearly all highlight their early-career learning experiences as crucial to their success. It’s not about falling behind. It’s about positioning yourself to leap ahead. Before taking your next role, ask yourself: “Will I learn something new every week, or just get better at what I already know?” The best investment in your 20s isn’t in stocks or crypto. It’s in your skills toolkit. #career #work #job

Can a club grow by giving tickets away for free? Fortuna Düsseldorf is betting €45M on it. Here's the radical business model reshaping German football: ✅ The "Fortuna für Alle" Experiment ▪️ Year 1 (2023/24): 3 free home matches ▪️ Year 2 (2024/25): 4 free matches ▪️ Year 3 (2025/26): 5 free matches ▪️ End goal: All 17 home games free by 2030 👉 Backed by a €45M sponsorship fund from partners who get it. ✅ The Math Behind "Free" Traditional model: ▪️ Ticket revenue: ~€8M/year ▪️ Average attendance: 32,000 (65% capacity) - estimate ▪️ Fan engagement: Transactional Fortuna's model: ▪️ Sponsorship replacing tickets: €9M+/year ▪️ Average attendance: 48,000+ (98% capacity on free days) - estimate ▪️ Fan engagement: Community ownership ❗ The multiplier effect (estimate): ☑️ Merchandising: +47% on free match days ☑️ Sponsor visibility: 50% more impressions ☑️ Media value: €12M in earned PR (first year alone) ✅ Why Sponsors Are Paying for Your Ticket ▪️ Full stadium = Premium brand environment ▪️ 48,000 engaged fans > 32,000 paying customers ▪️ Community goodwill transfers to sponsor brands ▪️ Young fan acquisition (42% under 25 on free days) ✅ The Strategic Genius It's venture capital thinking applied to football: 1️⃣ Customer Acquisition Cost: €0 2️⃣ Lifetime Fan Value: €2,800 (merchandise, concessions, loyalty) 3️⃣ Community Asset Building: Priceless Traditional clubs sell tickets. Fortuna sells belongings. ❗ Fortuna isn't just giving away tickets. They're building a generation of fans. ✅ The Implications for Football If this works, we'll see: ▪️ Sponsors becoming de facto season ticket holders ▪️ Stadiums as community assets, not revenue centers ▪️ Fan loyalty measured in decades, not seasons ▪️ Young fans choosing clubs based on values, not trophies 👉 The paradigm shift: From extracting value from fans → Crating value with the community When your grandson asks why he supports Fortuna Düsseldorf, the answer won't be "because they won." It'll be "because they invited us in." ❓ Which club will be brave enough to follw? #FootballBusiness #CommunityStrategy #Germanfootball data: Fortuna Düsseldorf, Sponsors.de, Kicker ph: undici

Is ROAS the right metric for RMNs? Retail Media Networks (RMNs) have outgrown their early days when untapped demand meant every dollar spent was both high-ROAS and high-incrementality. Today, focusing solely on ROAS incentivizes behaviors that may appear efficient but harm long-term profitability and growth. Here’s how ROAS can be gamed—and why it’s problematic: 1️⃣ Over-spending on Retargeting or Brand Keywords. These tactics drive high ROAS but focus on customers who were likely to convert anyway, resulting in low incremental growth. 2️⃣ Discount-Driven Sales. Discounting boosts ROAS by generating short-term revenue but lowers margins, attracts low-LTV customers, and conditions buyers to expect promotions. 3️⃣ Cutting Spend on High-Incrementality Campaigns. Investing in new customer acquisition or brand building may have lower ROAS but drives long-term growth and quality customer cohorts. These behaviors lead to: ⛔️ Shrinking new customer cohorts. ⛔️ Increased reliance on discounts, reducing margins. ⛔️ Lower customer lifetime value (LTV) and diminished profitability over time. In essence, chasing ROAS at all costs leads to slower growth and declining margins—a losing combination for any business. Efficiency metrics like ROAS are necessary but must be balanced with an effectiveness metric that focuses on long-term outcomes. For example: ✅ 180-Day Contribution LTV: Measure the total revenue contribution from full-price customers acquired over six months. ✅ Incremental Revenue from Non-Brand Keywords: Track revenue generated from truly new demand sources. ROAS is an excellent efficiency metric but a poor north star. Striking the right balance between efficiency and effectiveness will ensure your business scales sustainably while maintaining margins. Keen to hear what other metrics are used for RMNs #advertising #media #tech