Marketing Budget Calculator

Are you spending your marketing budget as effectively as you could be?

Marketing has two jobs: sales activation and brand building.

Sales activation is any type of marketing activity intended to create a pretty much immediate spike in sales. This includes advertising with product information, benefits and pricing.

Brand building is any type of marketing intended to build positive associations of your brand long-term to drive future sales. This includes advertising that communicates your brand’s positioning or beliefs.

Both are equally important, but most brands tend to overfocus on the short term (sales activation) and underfocus on the long term (brand building). After all, it’s easy to measure success through sales conversions, and who doesn’t love a bit of instant gratification?

But this doesn’t make for the most effective marketing spend. Les Binet and Peter Field, two globally renowned experts in brand marketing, crunched data from thousands of marketing effectiveness case studies. They found that the optimal split for sustainable growth is 60% of marketing spend committed to brand marketing and 40% to sales activation.

This ratio changes depending on a number of product, brand and category variables.

So, based on Binet and Field's data, we've created this simple marketing budget calculator that you can use to discover the optimal split for your company’s brand strategy.

To learn more about the 60:40 principle and the data behind our calculator, watch Peter Field and Les Binet's presentation.

"Tracksuit's calculator is helpful for us to understand and use the methodology for Kernel’s ideal marketing budget split.

With these results and data, we can be more confident in advocating for additional brand building campaigns."

- Christine Jensen,
Marketing Manager at Kernel

Here's what to know about using this marketing budget calculator:

  • It uses Binet and Field’s 60/40 methodology to save you the time of doing the calculations by hand. 
  • Your budget split is calculated depending on five key variables, including your business size and pricing strategy. 
  • It collects the data you input so we can generate trend reports on budget splits, but we will never share your name (or your contact details).
  • Sadly, it doesn’t tell you how to supercharge your company TikTok account’s growth.