What is the difference between brand and demand, in plain terms?
Demand capture reaches the small number of people shopping right now, brand building reaches the far larger number who will shop later. The Ehrenberg-Bass research behind the 95-5 rule says roughly 5 percent of your buyers are in market at any moment, so a pure demand strategy is fishing in a very small pond and paying more for it every year. Brand work is what makes you one of the two or three names that come to mind when the other 95 percent finally have the problem. Google's own research puts it starkly: most B2B buyers end up choosing a vendor from the shortlist they already had on day one.
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The source of the 95-5 rule: at any moment only about 5 percent of your buyers are in market, so most brand spend is aimed at future demand. It is the evidence base for arguing brand budget with a CFO.
Carries the stat that matters for brand budget arguments: 92 percent of B2B buyers pick a vendor from the list they had on day one. Uses Indian companies (JustCall, Uniqode) rather than the usual US case studies.
Median marketing spend around 8 percent of ARR and sales around 15 percent, split by funded versus bootstrapped, from a survey of over 1,000 private B2B SaaS companies. Numbers to anchor a brand versus demand budget argument.
Jon Lombardo ran research at LinkedIn's B2B Institute, so this is the 95-5 idea explained by the person who helped popularise it. He gives you the plain language version of why chasing only the buyers in market today gets more expensive every year.