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Teaching notes · lesson 15 · a 20-minute class

Brand vs activation: the 60:40 split explained

Where the famous ratio comes from, and why yours may differ. Tracks: Media, Strategy.

Open the lesson

Learning goalsBy the end, students can

  • Explain where the 60:40 split comes from and what it averages.
  • Explain why the best split moves with the horizon you judge over.
  • Argue for a split for a given brand with reasons, not a ratio from memory.

The 20-minute classMinute by minute, with the lab on the projector

  1. 0:003 min, to 3:00

    Cold open

    Ask: what is the right split between brand and activation? Write every number the room offers on the board.

  2. 3:004 min, to 7:00

    The idea

    Introduce Binet and Field's IPA finding, then their later work showing the best split varies by category and situation.

  3. 7:005 min, to 12:00

    Lab on the projector

    Hold a split for three years. Find the best split over one, two and three years and read them out.

  4. 12:003 min, to 15:00

    Pairs

    Pairs say which horizon their own organisation, or one they know, judges media on.

  5. 15:003 min, to 18:00

    Discussion

    Take the question on what happens when finance reads only this year's return.

  6. 18:002 min, to 20:00

    Check

    Three lesson questions. Return to the numbers on the board.

Discussion questionsWith what a strong answer covers

  1. Is 60:40 a rule?

    A strong answer covers
    • No: it is an average across IPA cases.
    • The best split varies by category, brand position and horizon.
    • Binet and Field (2018) found a wide range in the cases they studied.

  2. Why does the best split move towards brand building as the horizon grows?

    A strong answer covers
    • Brand building's return keeps arriving for years.
    • A longer horizon counts more of it.
    • In the lab, the best split moves from 50:50 over one year to 70:30 over two and 80:20 over three.

  3. What goes wrong with too little activation?

    A strong answer covers
    • Demand brand building creates is not converted.
    • Next year's sales lack support.
    • The split is a means, not a goal.

The lab as homeworkAbout 15 minutes for a student

Use the lab to find the best split for three horizons.

  1. Hold a split for three years and note profit over one, two and three years.
  2. Try at least four splits.
  3. Find the best split for each horizon.

They answer: Which split earned most over one, two and three years, and what horizon would you recommend a brand judges media over?

A strong answer covers
  • Quotes the best split for each horizon from the lab.
  • Explains why the best split moves towards brand building.
  • Recommends a horizon and ties it to the brand's situation.

Students also answer the lesson's three questions. Their score is worked out on the server from their answers.

Set this lab as homework

Students open a link, do the lab, answer the three questions and write what they found. You see each student's quiz score and finding on your class page.

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