The 95/5 rule in marketing explained: a 3-minute breakdown with key takeaways

The 95/5 rule applies to both B2B and B2C marketing and states that, at any given moment, only about 5% of your potential customers are "in-market" and ready to buy.

That means 95% of potential buyers aren’t looking to purchase right now – and they’re also not interested in clicking your ads, reading product details, or engaging with direct promotions.

The main implications

• Performance marketing has inherent limits – It can only capture demand from the small 5% who are already ready to buy.
• This explains why many companies experience a sudden growth plateau after an initial success with a performance-driven strategy – they've simply harvested all the existing demand in the market.
• Marketing success isn’t just about immediate conversion – The real game is influencing future buyers so that when they enter the market, they already know, trust, and prefer your brand.

Key takeaways for marketers

Rebalance budget toward brand building

‍Shift investment toward brand awareness and high-reach memory-building campaigns rather than focusing only on direct sales activation.

Binet & Field’s 60% brand / 40% activation rule is a rough starting point, but depending on your stage, category, etc., the best balance could range anywhere from 50/50 to 80/20 in favor of brand marketing.

Adjust expectations and KPIs

Instead of focusing solely on immediate ROI or quarterly sales lifts, start tracking top-of-the-funnel indicators like brand awareness and mental availability – because they drive future sales.

The best ads for the 5% actively shopping

‍Ensure you have easy-to-find product information, promotions, and sales enablement. Success can be measured by conversions and engagement. 

The best ads for the 95% not yet shopping

‍Use upper-funnel tactics to ensure effective memory–building. Success and effectiveness can be both precisely predicted and later measured with behavioral creative testing methods.

The three essentials for effective brand-building ads:

• Strong emotional storytelling – Cut through the noise and grab attention from people who don’t care about your product yet. ‍
• Unmistakable branding – Ensure viewers remember your brand, both visually and audibly. ‍
• Simple message – Make it clear what you’re good for (category) and, optionally, highlight one unique value (how you’re different). No extra messages, no product details. 

Is the 95/5 rule a rough heuristic, or does it literally mean 95/5?

It’s a parameterized rule that can be calculated using market data. For most products and services, the actual ratio falls somewhere between 98/2 and 93/7.

This might feel counterintuitive – after all, we buy shampoo monthly but only purchase a car once every few years. However, longer inter-purchase cycles also come with longer decision windows. You might spend 30 days selecting a car, while choosing shampoo takes just one day. See more here. 

Origin and academic evidence 

This insight comes from Professor John Dawes of the Ehrenberg-Bass Institute (2021), who studied B2B buying patterns. His findings align with previous Ehrenberg-Bass research on brand growth, showing that brands grow by reaching “light buyers”—those who purchase only occasionally. 

Additionally, Les Binet and Peter Field’s research (The Long and the Short of It) found that long-term brand-building campaigns drive larger, more sustainable sales growth over time than short-term activation campaigns.

Further reading

• Dawes, J. (2021). Advertising effectiveness and the 95-5 rule: most B2B buyers are not in the market right now. Ehrenberg-Bass Institute / LinkedIn B2B Institute (The 95:5 Rule | John Dawes) (What Is the 95:5 Rule? Does It Apply To Your Company?).
• Weinberg, P. & Lombardo, J. (2021). The 95:5 rule is the new 60:40 rule. Marketing Week (The 95:5 rule is the new 60:40 rule - Marketing Week) (Ehrenberg-Bass: 95% of B2B buyers are not in the market for your ...).
• Marketing Week (2022). Ehrenberg-Bass: 95% of B2B buyers are not in the market for your products. (news report on Dawes’ research) (Ehrenberg-Bass: 95% of B2B buyers are not in the market for your ...).
• Earnest Agency (2023). Busting the 95-5 myth and B2B marketing ‘rules’. (Industry blog) (The must-read research that can make or break your B2B marketing) (Busting the 95-5 myth and B2B marketing 'rules' - Earnest Agency).
• NetLine (2022). Challenging the 95-5 Rule: How Buyer-Intent Data Proves More B2B Buyers Are In-Market. (Intent data study) (Challenging the 95-5 Rule: How Buyer-Intent Data Proves More B2B ...).
• Westwood One (2022). The 95/5 rule in audio advertising. (Industry analysis) (The 24%-18%-58% Rule And A Major New Study Reveal Audio Is A ...).
• Tomango (2022). Marketing to the 95% of Your Out-of-Market Audience. (Marketing agency blog) (Marketing to the 95% of Your Out-of-Market Audience - Tomango).
• S&P Global Market Intelligence (2019). Auto buyer demographics and purchase rates. (Automotive market data) (Demographic buying is leaving car customers on the side of the road).
• Mi3 Australia (2022). Interview with Salesforce’s Colin Fleming on long-term brand marketing. (Vanity metrics must die: Salesforce's top marketer culls content ... - Mi3).
• LinkedIn B2B Institute (2022). The 5 Principles Of Growth in B2B Marketing. (Report references) (2024 Edelman-LinkedIn B2B Thought Leadership Impact Report).
• B2B Marketing Directions (2023). What the 95:5 Rule Means for B2B Marketing. (Expert blog) (Make the most of hard times - PaperplaneCo) (The 95:5 Rule | John Dawes).