Brand Investment Calculator

Find the optimal balance between brand building and performance marketing. Based on research by Les Binet and Peter Field.

Your company's annual revenue

All marketing expenses per year

The rest is considered performance marketing

Budget Analysis

Marketing Share of Turnover
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Brand Investment (share of turnover)
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Split: Brand vs Performance
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How to interpret the results

According to research by Les Binet and Peter Field, the ideal budget split for most companies is 60% Brand : 40% Activation (Performance) for long-term growth.

Recommendations by segment

  • B2C (Mature brands): 60% Brand, 40% Performance
  • B2B: 50% Brand, 50% Performance
  • Startups/Growth: 40% Brand, 60% Performance

Why invest in brand?

Brand building creates long-term value, reduces price sensitivity, and increases customer loyalty. Performance marketing generates immediate sales but doesn't build sustainable competitive advantage.

Warning: These are general guidelines. Your optimal split depends on market maturity, competitive intensity, and business goals.

Frequently Asked Questions (FAQ)

What is the difference between brand and performance marketing?

Brand marketing builds long-term awareness, trust, and emotional connections (e.g., TV, display, content). Performance marketing drives immediate conversions (e.g., Google Ads, Facebook conversion campaigns).

Should startups invest in brand building?

Yes, but with a different ratio. Startups typically need more performance marketing (60-70%) to generate revenue, but should still allocate 30-40% to brand building for sustainable growth.

How do I measure brand investment effectiveness?

Track metrics like brand awareness, consideration, preference, and organic search volume. Brand effects typically take 6-12 months to materialize and compound over time.

Why it matters

Companies that over-invest in performance marketing see short-term gains but struggle with long-term profitability. Those that balance brand and performance achieve sustainable growth with improving margins over time.

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