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Lesson 7 of 13 · about 4 minutes

Brand and activation: your own split

Sales now, or sales for years.

In one line

Activation media sells in the weeks it runs and fades. Brand-building media works slowly through memory and lasts. Binet and Field found about 60:40 brand to activation works best on average across IPA cases, a benchmark rather than a rule: one brand's best split moves with its category, its position and how long you judge it over.

What it does

  1. Each burst of media leaves a trace that decays over time: adstock, or carry-over. Activation's trace fades within weeks; brand media's lasts quarters.
  2. Brand media raises mental availability and lowers price sensitivity, so every later quarter sells more at a better price.
  3. Cutting brand media flatters this year's profit. The cost shows up next year as lower share.

Business and brand

Impact on the businessP&L, cash, share price

  • Activation pays back faster and is easier to measure inside the quarter.
  • Brand media looks expensive in-quarter and pays over two or more years.
  • A plan judged quarter by quarter drifts towards activation and erodes growth.

Impact on the brandMemory, loyalty, pricing power

  • Brand media builds memory and pricing power that compound.
  • Activation converts existing demand but builds little that lasts.
  • The right split depends on the category and the brand's stage; 60:40 is an average.

Try it

Split a fixed budget

Divide the same media budget between brand and activation for a year. Next year everyone goes back to the plan they started with, so any gap is what this year left behind.

Your brand's position
Judged on
60:40
Same total: €7.5m over the year
Best for this brand, over two years80:20Countermove's model output
This year, vs 60:40The benchmarkgross profit after media
Next year, vs 60:40The benchmark
€42m€43m€44m€45m0%20%40%60%80%100%Next yearThis year

Share of the media budget on brand building → 60:40 is Binet & Field's average across IPA cases; Countermove works out each brand's own split.

Notice: For Brightwater, the challenger, the split that earns most over two years is 80:20, €0.24m more than 60:40. Judged on this year alone it would be 50:50: activation's quick sales count in full, brand building's later payback does not. You are on the activation side of it.

Runs Countermove's market engine: the reference soft-drinks market, three brands, rivals holding their plans so only your change moves the result.

Sources

  • Binet & Field (2013), The Long and the Short of It, IPA
  • Assmus, Farley & Lehmann (1984), Journal of Marketing Research: advertising carry-over
  • Sethuraman, Tellis & Briesch (2011), Journal of Marketing Research

Check itThree questions, instant answers

Question 1 of 3What split did Binet and Field find works best on average?
Question 2 of 3You move budget from brand to activation. What usually happens?
Question 3 of 3What is adstock?