The Science of Budget Setting

Marketing budgets are a mess right now, says Mark Ritson. His solution? A simple, three-step system inspired by triple-cooked chips: spend 5-10% of revenue, balance long and short-term investment, and measure each piece properly.

This week, Elena, Angela, and Rob tackle one of the trickiest questions in marketing: how do you set a budget that actually drives growth? They explore Ritson's budgeting system, why marketers struggle to secure investment, and the frameworks needed to justify balanced spending.

Topics covered:

• [01:00]Mark Ritson's three-step budgeting system
• [04:00]High-growth companies spend far more than 5-10%
• [11:00]The 60/40 rule and why most brands fall short
• [15:00]Setting measurement expectations for brand vs performance spend
• [20:00]How performance backgrounds shape budgeting approaches
• [26:00]Keeping unallocated budget for real-time opportunities

To learn more, visit marketingarchitects.com/podcast or subscribe to our newsletter at marketingarchitects.com/newsletter.


Resources:
2022MarketingWeek Article: https://www.marketingweek.com/ritson-triple-cooked-chips-marketing-budgets/
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