The New 40/40/20 Rule of Marketing for the Digital Age

By Tendo Team
December 2, 2024

David Ogilvy, founder of Ogilvy Mather and referred by many as the “father of advertising,” once said, “I expect the direct response people to become an integral part of all agencies.” It turns out his prediction was accurate. Today, the vast majority of ad agencies and in-house marketing organizations both big and small support demand generation programs.

However, while Ogilvy’s words still hold true, many of the direct marketing rules from his day have gone the way of the two-martini lunch. Case in point: the classic direct marketing 40/40/20 rule.

Marketing guru Ed Mayer developed the 40/40/20 rule in the 1960s to help marketers understand where to focus their efforts. The rule consists of three core elements that were critical in direct marketing campaigns before the rise of the internet:

40% audience. Marketers primarily used direct mail lists to generate demand for their products and services. Like any media, you could segment mailing lists by a range of criteria. Target the wrong audience, and your campaign was doomed.
40% offer. An offer is the value exchange you are providing and drives the recipient to the action you want them to take. A discount on a product, a rebate, or free delivery—these are all types of offers you merchandised as the call to action.
20% creative. Creative encompasses everything—the message, visual elements such as typography and layout, and, of course, the copy. While it may only account for 20% of the 40/40/20 rule, creative components could make or break your campaign.

Expand the 40/40/20 Rule for Better Demand Gen Campaigns

Does the 40/40/20 rule of marketing have a place in today’s digital demand gen era? To some degree, it does.

However, digital media’s rapid growth (57% of marketing spending was funneled into digital marketing as of 2022), the variety of content platforms, an ever-evolving buyer’s journey, and the proliferation of AI-driven marketing technology (martech) and measurement tools require a rethink—and expansion—of the variables that comprise the 40/40/20 rule.

Here are the variables companies should consider when developing a demand generation campaign:

20% audience. Know your target—it’s the most critical variable. But move beyond simple demographics. Create and then apply detailed personas that include the emotional and rational triggers that compel your audiences to act.
20% content. Content remains a vital component in driving engagement and response, especially in the AI-enabled martech era. To succeed, you need to provide the right content aligned to the right personas across the entire buyer’s journey. Having an AI content playbook can help.
10% data. Data drives when, how, and to whom you communicate. It influences your decision on channel and cadence, and it’s key to understanding your campaign ROI. Data has always been important, but with AI advances in data capture and analysis, it has become integral to demand gen success.
10% messaging. Messaging was once considered part of “creative,” but it’s too important to be lumped into that bucket. Messaging offers a framework for how you position your offers and content. It establishes the voice and tone for your campaign and determines how audiences perceive your brand.
10% distribution. With so many marketing distribution channels (paid, owned, and earned), it’s important that you understand and optimize your efforts based on where your audience is consuming information.
10% alignment. In today’s omnichannel world you need to provide audiences with a consistent experience across all your brand touchpoints. This requires alignment across marketing and sales. Sales needs to know what marketing is putting into the market.
10% offer. Offers are still an important component in communications, especially for nurture programs and sales enablement. The better your offer is, the better your response will be.
10% visuals. Graphics, illustrations, data visualizations, iconography, photos, or videos—no matter the format, they’re a big element in today’s demand generation efforts. Research shows that visuals can increase information retention from 10% to 65%.

Need Help Generating Customer Demand?

Tendo can help you power your demand creation and demand capture initiatives with integrated content programs and well-timed campaigns that show your audience how you can solve their pain points. Contact us to learn more.

First published August 17, 2017