The globe’s largest brands’ ad-to-sales ratios are down, which can impact how a fund’s budget holders assess marketing campaign ROI.
TL;DR: track marketing activity against inflows.
The effects of the pandemic are still ongoing. So much so that 25 of the world’s largest brands – including Meta, Microsoft, and Nike – are putting a smaller share of their sales into advertising than they did before it hit.
These companies may feel a galaxy away from asset management, but the following figures may reach CEOs, CFOs COOs and bring to mind issues with asset-growth across fund sales and marketing, too:
- Across the group, advertising rose 56% between 2019 and 2025, but revenue grew 73%, making the combined ad-to-sales ratio slip from 6.1% to 5.5%.
- This was most evident for Big Tech companies; Alphabet, Netflix, Meta and Microsoft cut their ratio from 13% to 7.4%, while revenue grew 146%.
- Consumer goods went the other way. Coca-Cola, Estée Lauder, L’Oréal, Nike and P&G raised ratios, spending rising 36% against revenue growth of 29%.
Analysis by WARC Media estimates that holding the 2019 ratio could have meant around $52 billion more in spending. It also forecasts that global ad spending will grow to $1.34 billion in 2026.
The research highlights a pattern that fast revenue growth corresponds with a falling ratio, suggesting that ratio is a result of growth as much as it is a creator for it. This is potentially due to weaker sales figures in tough conditions, money being moved to retail media, and whether companies own their audience or ‘rent’ attention.
A falling ratio does not indicate whether marketing cuts cause or coincides with better results.
So, what does this mean for fund marketers?
Benchmarking an asset manager against these commerce giants is unwise, particularly in internal presentations. But even for businesses that raise capital through relationships, consultants and platforms rather than mass-market sales, budget holders will expect similar actionable figures that can justify successful allocator campaigns.
Expect budget questions framed around efficiency
Headlines about leaders spending smaller shares of revenue will prick the ears of CFOs, who will demand your own ROI numbers: costs per qualified meetings, the share of AuM influenced by investors’ digital touchpoints, and costs to re-engage existing LPs.
Why the ‘owned vs rented’ distinction matters
Your email list, event and research subscribers and CRM data are owned audiences, whereas paid placements through third-party platforms are rented. If budgeting is tight, owned channels that impact the pipeline are easier to double down on.
Plan for growth-stage differences
Ratios should be set to proportionate stages of growth than to an industry average, as new managers building their track record need more intense marketing than a firm with a large, established investor base.
Global trends such as these (no matter the industry) showcase the necessity of auditing marketing spend based on investor data; a regular practice that keeps consistent asset-raising on track.
Source
Marketing Week, “Many of world’s biggest brands have reduced ad spend as a proportion of sales, research finds”
