The Science of Budget Setting

Welcome to Nerd Alert, a series of special episodes bridging the gap between marketing academia and practitioners. We’re breaking down highly involved, complex research into plain language and takeaways any marketer can use.In this episode, Elena and Rob discover that authenticity in advertising isn't what most marketers think it is. They explore four distinct dimensions of authenticity and reveal why the most "real" ads don't always drive the best results.Topics covered:   [01:00] "Does it Pay to Be Real: Understanding Authenticity and TV Advertising"[02:00] The four dimensions of authenticity in advertising[03:00] Why brand essence beats heritage and realism[05:00] When unrealistic ads outperform everyday scenarios[07:00] How product type and brand size affect authenticity strategy[08:00] Why user-generated content isn't always the answer  To learn more, visit marketingarchitects.com/podcast or subscribe to our newsletter at marketingarchitects.com/newsletter.  Resources: Becker, Maren, Nico Wiegand, and Werner Reinartz. “Does It Pay to Be Real? Understanding Authenticity in TV Advertising.” Journal of Marketing Research. https://journals.sagepub.com/doi/10.1177/0022242918815880 Get more research-backed marketing strategies by subscribing to The Marketing Architects on Apple Podcasts, Spotify, or wherever you listen to podcasts. 

Real buying decisions are habitual. They're often emotional. Nudges assume people carefully weigh options, but in reality, they just grab what's familiar or easy.This week, Elena and Angela explore the gap between behavioral theory and marketing reality. They discuss why popular psychological insights like loss aversion, anchoring, and choice architecture often fall short when applied to actual campaigns. Plus, they share which behavioral principles still work in real-world marketing and why mental availability beats nudges for driving sustainable growth.Topics covered: [01:00] Why behavioral economics experiments don't always translate to real marketing [04:00] The most powerful behavioral principle that works repeatedly [06:00] How Apple masters anchoring and framing to shape perception of value [09:00] Why real buying behavior is habitual and emotional, not deliberate [11:00] The behavioral economics principle that's been overhyped [13:00] How mental availability compares to behavioral tactics like nudging [15:00] The one behavioral insight to keep in your marketing toolbox  To learn more, visit marketingarchitects.com/podcast or subscribe to our newsletter at marketingarchitects.com/newsletter.  Resources: 2024 Behavioral Economics in Consumer Decision-Making Study: https://mideastjournals.com/index.php/mejelss/article/view/4  Get more research-backed marketing strategies by subscribing to The Marketing Architects on Apple Podcasts, Spotify, or wherever you listen to podcasts. 

Welcome to Nerd Alert, a series of special episodes bridging the gap between marketing academia and practitioners. We’re breaking down highly involved, complex research into plain language and takeaways any marketer can use.In this episode, Elena and Rob discover how our brains decide whether we like an ad in just three seconds, revealing that early emotional impact matters more than dramatic endings for advertising success.Topics covered:   [01:00] "Neural Signals of Video Advertisement Liking: Insights into Psychological Processes and their Temporal Dynamics"[02:00] How fast people decide if they like or dislike an ad[03:00] Brain activity shifts from emotion to social cognition to evaluation[04:00] Early neural signals predict population-level ad performance[05:00] First 10 seconds matter more than the ending[06:00] Why early branding beats waiting until the end  To learn more, visit marketingarchitects.com/podcast or subscribe to our newsletter at marketingarchitects.com/newsletter.  Resources: Chan, Hang-Yee, Maarten A. S. Boksem, Vinod Venkatraman, Roeland C. Dietvorst, Christin Scholz, Khoi Vo, Emily B. Falk, and Ale Smidts. 2024. “Neural Signals of Video Advertisement Liking: Insights into Psychological Processes and Their Temporal Dynamics.” Journal of Marketing Research. https://doi.org/10.1177/00222437231194319 Get more research-backed marketing strategies by subscribing to The Marketing Architects on Apple Podcasts, Spotify, or wherever you listen to podcasts. 

A 2020 study found that only the right brand architecture strategy maximizes reputation spillover while preventing underinvestment. But most companies make this critical decision based on emotion rather than data. This week, Elena, Rob, and Director of Brand Beth Kuchera explore when to use one brand across everything versus splitting them up. They reveal the five ways brand architecture impacts business success and share why getting this wrong can waste expensive "brain space" that's impossible to recover. Topics covered: [01:00] Research on branded house versus house of brands strategy[05:00] Five ways brand architecture helps or harms your business [10:00] Strategic upsides and downsides of branded house approach [14:00] Creative challenges of extending versus building new brands [17:00] Resources as the most important decision-making factor [24:00] Measuring brand effectiveness across multiple products  To learn more, visit marketingarchitects.com/podcast or subscribe to our newsletter at marketingarchitects.com/newsletter.  Resources: Yu, Jungju, A Model of Brand Architecture Choice: A House of Brands vs. A Branded House (May 28, 2020). Yu, J. (2021). A model of brand architecture choice: a house of brands vs. A branded house. Marketing Science, 40(1), 147-167., Available at SSRN: https://ssrn.com/abstract=3116284 or http://dx.doi.org/10.2139/ssrn.3116284  Get more research-backed marketing strategies by subscribing to The Marketing Architects on Apple Podcasts, Spotify, or wherever you listen to podcasts. 

Welcome to Nerd Alert, a series of special episodes bridging the gap between marketing academia and practitioners. We’re breaking down highly involved, complex research into plain language and takeaways any marketer can use.In this episode, Elena and Rob explore how consumer-created brand nicknames can backfire when brands adopt them officially. They reveal why "nickname branding" hurts performance across key metrics and shifts power dynamics in ways that damage brand perception.Topics covered: [01:00] "BMW is Powerful, Beamer is Not: Nickname Branding Impairs Brand Performance"[02:00] What nickname branding means and why brands do it[03:00] Speech Act Theory and power dynamics in marketing[04:00] When trying to be cool backfires spectacularly[06:00] Competent vs. warm brands and nickname effects[07:00] Transactional vs. communal messaging with nicknames  To learn more, visit marketingarchitects.com/podcast or subscribe to our newsletter at marketingarchitects.com/newsletter.  Resources: Zhang, Zhe, Ning Ye, and Matthew Thomson. 2024. “BMW Is Powerful, Beemer Is Not: Nickname Branding Impairs Brand Performance.” Journal of Marketing 89 (1): 135–??. https://doi.org/10.1177/00222429241266586  Get more research-backed marketing strategies by subscribing to The Marketing Architects on Apple Podcasts, Spotify, or wherever you listen to podcasts. 

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: 2022 MarketingWeek Article: https://www.marketingweek.com/ritson-triple-cooked-chips-marketing-budgets/ Get more research-backed marketing strategies by subscribing to The Marketing Architects on Apple Podcasts, Spotify, or wherever you listen to podcasts. 

Welcome to Nerd Alert, a series of special episodes bridging the gap between marketing academia and practitioners. We’re breaking down highly involved, complex research into plain language and takeaways any marketer can use.In this episode, Elena and Rob explore how advertising creates both immediate sales and long-term brand value through an integrated approach that connects thinking, feeling, and doing.Topics covered:   [01:00] "Discovering How Advertising Grows Sales and Builds Brands"[02:00] Do marketers design campaigns for both short- and long-term goals?[04:00] The integrated hierarchy framework: think, feel, do[05:00] Five years of soft drink brand data across 30,000 interviews[07:00] Why this brand's path was experience, then think, then feel[08:00] Advertising's direct impact on feelings and immediate sales  To learn more, visit marketingarchitects.com/podcast or subscribe to our newsletter at marketingarchitects.com/newsletter.  Resources: Bruce, N. I., Peters, K., & Naik, P. A. (2012). Discovering how advertising grows sales and builds brands. Journal of Marketing Research. https://doi.org/10.1509/jmr.11.0060  Get more research-backed marketing strategies by subscribing to The Marketing Architects on Apple Podcasts, Spotify, or wherever you listen to podcasts. 

75% of shoppers say they go to Amazon to find new products, even if they saw the brand elsewhere. Yet many companies still resist being there, missing massive opportunities for growth.This week, Elena, Angela, and Rob dive into physical availability, the often-overlooked "place" in the marketing mix. They explore why D2C brands are rushing back to retail, share real campaign examples where distribution made the difference, and discuss what physical availability means in an AI-first world. Topics covered: [02:00] Why "place" is the forgotten P in the marketing mix[06:00] How D2C brands discovered the limits of digital-only strategies[10:00] Real campaign examples where physical availability made the difference[15:00] Brands doing physical availability right today[19:00] Expanding your thinking about "place" beyond shelf space[23:00] Brands we'd buy more if they were easier to find  To learn more, visit marketingarchitects.com/podcast or subscribe to our newsletter at marketingarchitects.com/newsletter.  Resources: 2025 WARC Article: https://www.warc.com/newsandopinion/opinion/4ps---place-physical-availability-the-marketing-factor-youre-likely-overlooking/70102025 AdAge Article: https://adage.com/article/marketing-news-strategy/state-dtc-warby-parker-rare-beauty-draper-james/2603761/ Get more research-backed marketing strategies by subscribing to The Marketing Architects on Apple Podcasts, Spotify, or wherever you listen to podcasts. 

Welcome to Nerd Alert, a series of special episodes bridging the gap between marketing academia and practitioners. We’re breaking down highly involved, complex research into plain language and takeaways any marketer can use.In this episode, Elena and Rob reveal the harsh truth about marketers' ability to judge their own brand elements. They explore why we're terrible at predicting how consumers will respond to our logos, colors, sounds, and taglines.Topics covered:   [01:00] "Assessing Branding Strength: Comparing Marketer Judgment and Consumer Data for Brand Identity Elements"[02:00] Only 2% of marketer predictions are accurate[04:00] Why we love our brands like our own dogs[05:00] When marketers actually get it right[06:00] Why teams beat individuals at brand judgment[07:00] Don't trust your gut alone  To learn more, visit marketingarchitects.com/podcast or subscribe to our newsletter at marketingarchitects.com/newsletter.  Resources: Graham, C., & Lowrey, T. M. (2023). Assessing branding strength: Comparing marketer judgement and consumer data for brand identity elements. International Journal of Research in Marketing, 40(4), 977–996. https://doi.org/10.1016/j.ijresmar.2023.06.006  Get more research-backed marketing strategies by subscribing to The Marketing Architects on Apple Podcasts, Spotify, or wherever you listen to podcasts. 

Only 40% of Fortune 500 marketing leaders actually hold the title Chief Marketing Officer. But average CMO tenure is now 4.3 years, up from last year. So is the CMO role really disappearing? New research from Spencer Stuart challenges the "CMO decline" narrative everyone loves to share. This week, Elena and Angela explore why this story gained traction, what effective marketing leadership looks like today, and how first-time CMOs can stay relevant. Plus, they share which brands they'd love to lead for one year. Topics covered: [01:00] Spencer Stuart's 2025 Fortune 500 CMO research findings[07:00] Only 40% of marketing leaders use the CMO title[10:00] Should CMOs handle roles beyond traditional marketing?[12:00] What effective marketing leadership looks like today[17:00] Biggest challenge facing first-time CMOs[22:00] How companies should treat the CMO role differently  To learn more, visit marketingarchitects.com/podcast or subscribe to our newsletter at marketingarchitects.com/newsletter.  Resources: 2025 Spencer Stuart Report: https://www.spencerstuart.com/research-and-insight/cmo-tenure-study-2025-the-evolution-of-marketing-leadership Get more research-backed marketing strategies by subscribing to The Marketing Architects on Apple Podcasts, Spotify, or wherever you listen to podcasts.