Insights from the field
Cutting the marketing-to-revenue ratio: a CMO playbook
Cutting the marketing-to-revenue ratio means tying every major spend to a defensible result, eliminating channels that only capture existing demand.
In short
Cutting the marketing-to-revenue ratio means tying every major spend to a defensible result, eliminating channels that only capture existing demand, and reinvesting in what compounds. As CMO of LeoVegas, we cut this ratio from 40% to 30% while growing the top line.
The direct answer
This is a practical question with a practical answer. Cutting the marketing-to-revenue ratio means tying every major spend to a defensible result, eliminating channels that only capture existing demand, and reinvesting in what compounds. As CMO of LeoVegas, we cut this ratio from 40% to 30% while growing the top line. The more detailed explanation below derives from executing the work, not merely discussing it.
Why this matters
If this is a consideration, the most efficient path to a concrete answer is a direct discussion about your specific situation, not a generic article. Action Is Now operates as an embedded leadership function, so the guidance provided here is the same guidance executed within an engagement.
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Frequently asked questions
What is a healthy marketing-to-revenue ratio?
It depends on stage and margin, but the direction matters more than the number. As CMO of LeoVegas we took it from 40% to 30% while growing the top line, by tying every major spend to a defensible result.
How do you cut marketing spend without hurting growth?
Cut the channels that only harvest demand you already have, keep and reinvest in what compounds. Most budgets can lose a third of their spend and grow, because a third was capturing customers who would have bought anyway.
What is the difference between demand capture and demand creation?
Demand capture converts people already looking, like brand search. Demand creation builds future pipeline. Over-spending on capture flatters short-term ROAS while starving growth. Rebalancing toward creation is what lowers the ratio sustainably.
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