The WARC Podcast Convincing the CFO that brand building investment is worth it
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Apr 3, 2025 Preston Rutherford, co-founder of Chubbies and Marathon, dives into the critical need for convincing CFOs that brand building isn't just an expense, but a vital investment for growth. He tackles the challenges of traditional ROI metrics and discusses how performance marketing meshes with brand development for sustainable success. They also delve into redefining success metrics, emphasizing profit margins, and the synergy between branding and digital strategies, offering actionable insights for navigating today’s marketing landscape.
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Analyzing Marketing Performance for CFOs
- Analyze contribution margin, gross vs. net sales, and discount usage over time.
- Compare current ads with older ones to assess the shift towards hard selling.
Chubbies' Shift from Brand to Performance
- Chubbies initially focused on brand building due to a unique value proposition.
- They shifted to performance marketing due to investor pressure and the allure of high ROAS.
Metrics and Testing for Brand Building
- Shift from revenue to contribution margin as the key metric.
- Conduct rigorous A/B tests and lift studies focused on contribution growth, not just clicks.