In this Marketing Atlas video, host Hernan Vazquez explains the 95/5 rule of advertising—a framework that divides a market into 5% current, in‑market buyers and 95% future buyers who will purchase later. He traces the rule’s origin to a newsletter (Stacked Stock Marketer) and illustrates it with an anecdote about two ad executives and long‑term brand recall. Vazquez argues that most advertising effort should target the 95% future buyers through long‑term social‑branding campaigns, while conversion‑focused Facebook ads should be reserved for the 5% ready‑to‑buy segment. He details how Facebook’s potential reach and machine‑learning optimization work, and how to complement conversion campaigns with engagement‑type ads (e.g., helpful videos) to nurture the larger audience. The video also promotes a free Facebook‑ads class (100millionwebinar.com) and references his agency ScaleDriven’s practice of allocating 10‑15% of ad spend to branding to stay top‑of‑mind for future buyers.
Marketing and advertising can be complicated. What's most important? Direct marketing? Email campaigns? Social media? Cold calling? With Marketing Atlas, you'll have a clear guide to get more leads, close more sales, and take your business to the next level. Welcome to Marketing Atlas. Marketing Atlas. With your host, Hernan Vazquez.
So what is the 95/5 rule of marketing and advertising and how you can use it to get more sales to your business? What's going on, everybody? Hernan Vazquez here. I hope that everyone is doing really, really well today. And before I dive into the 95/5 rule of advertising, what it is, how you can use it, I just wanted to invite you to this class that we put together. It's called How to Get Results with Your Facebook Ads, Even If It's Your First Campaign, and from people running Facebook ads, okay? From a guy running Facebook ads like me and my team, I wanted to invite you to the class. So if you click on the link somewhere around here, or if you go to 100millionwebinar.com, then you'll be able to register for that class. Okay, cool. So What I want to share with you guys today is the 95/5 rule of advertising and why you should care and why this is super important and how we're using this 95/5 rule of advertising to actually get sales for coaching students or our clients at the agency and all of that. So the first thing is I want to give credit where credit is due. I didn't come up with this. Of course, I'm subscribed to this newsletter. It's called Stacked Stock Marketer is a great newsletter and I get a lot of ideas out of it. And, you know, I really recommend it. It's free. I think it's stockmarketer.com. I'm not sure. It's 100% free. And I really recommend you join them because it's pretty cool if you ask me. And today I got this new newsletter in my inbox about the 95/5 rule of advertising. Okay. So I'm going to share my screen because this is pretty cool. And by the way, the source to this article It's going to be somewhere around this video right here. So this is a great article, by the way. Feel free to go ahead and check it out. And there's going to be a link somewhere around here so that you can check it out. But here's the thing, and here's where I want to, to actually make a distinction here, which is there's a story about 2 ad executives who get into a car. The first ad executive says, I saw an ad for Aston Martin and bought this car. And the second executive says, but Aston Martin hasn't advertised for years. How is that possible? Talking about attribution, right? Like maybe they saw an ad 14, 15 years ago and now they bought an Aston Martin. That happens a lot. You know, when you're a little kid, you see a Lamborghini or you see a Ferrari and whatnot, and they don't advertise a lot, but you still want it. So this is what the 95/5% or the 95/5 rule of marketing Talks about. Okay, so here's something that it's also pretty interesting, which is 75% of companies buy computers once every four years. Okay, 75% of companies buy computers once every four years. What does that mean? Does that mean that IBM or Apple or whatever they're only advertising or marketing once every four years? No, they keep on marketing. They keep on advertising, right? 80% of companies change principal bank once every five years. Does that mean that banks are going to advertise once every 5 years? No, right? 90% of consumers buy new cars once every 10 years. 90% of consumers buy new cars once every 10 years. So what does this mean for us, especially when it comes to B2B and when you're selling services to other companies or you're selling services to other entrepreneurs, which we do? Here's something that I want to give you guys today. It's like, Current buyers, like in-market buyers, that means people that are ready to buy right now. It's only 5% of your market right now. People that are ready to buy right now, right at this point, it's only 5% of your market. Future buyers, it's 95% of your market. Okay? So if you think about it, future buyers, which means people that are not ready to buy right now, but they might be ready to buy 3 to 6 months to maybe a year from now, or maybe 2 years from now, that's 95% of your marketplace. That's where the real money is made. Okay? That's why I keep on saying advertising, you need to advertise for the long game. That's why I keep on talking about the benefits of social branding campaigns. The way we do it at ScaleDriven is we do the ScaleDriven social branding campaigns so that we can capture and nurture and be top of mind for that 95% future buyers. That are not ready to buy right now. So how does this translate to advertising? To advertising? How does this translate to Facebook ads particularly? When you're running a conversion campaign, and by the way, you can see this article. I'm going to leave a link somewhere around here, but let me go back to the full screen. When you are running a conversion campaign on advertising on Facebook ads, you're targeting that five percent. Of current buyers, okay? What does that mean? That means that you know when you're when you're making your targeting on your Facebook ads campaigns, you might target an audience that is ten million people or something like that. Okay, that's cool. Ten million people, you say. Okay, well, I only need like one percent of these people or less than that to buy my product, right? But here's the thing: Facebook says potential reach. Potential reach is ten million people. Now. Within that, that audience, you have buckets of people that are ready to buy right now. Usually, if we follow this rule, 95/5, 5% of people within that audience will be ready to take action right now. It's still a big number, right? That's still a big number if you're targeting 10 million people. But still, what do you do with the rest 95%? So when you run a conversion campaign, you're asking Facebook, hey Facebook, bring me a conversion right now. Bring me a meaningful action, whether it is a lead, a sale, a book a call, whatever that is right now. So Facebook is going to use their machine learning to understand, okay, within that audience, who is ready to buy right now? Who's ready to take action right now? And they're only going to show your ads to a small percentage of that 10 million people that Facebook told you that's the potential reach. Okay. Now, how do you address the rest of the market? How do you address the rest, the 9,500,000 people that are not within that conversion audience? Well, you do it with additional conversion objectives. One of the conversion objectives, one of the campaign objectives that we use is called engagement. Okay, we will run videos that are really helpful to these people.
Why?
Because we want to nurture them. We want them when they're ready to become that 5% that is ready to take action right now, we're on top of mind, right? So, we do this with video views campaigns. We do this with sometimes brand awareness campaigns, right? We only dedicate— since we're a marketing, a direct response marketing agency and coaching business, we only dedicate, and we tell our coaching students as well, to only dedicate anywhere between 10% to 15% of their overall advertising budget to those type of campaign objectives. Why? For many reasons. Number one, they're still cheap to run. Number two, you need to dedicate most of your advertising budget to that 5% of people that are ready to buy right now, but you need to dedicate at least some of your advertising budget to nurture, build, and try to convince those people that are in the 95% big pool to actually give you money, right? So that's why I think this is a great article. Again, I'm going to cite the source somewhere around here. If you want to learn more about how we're nurturing, how we're tapping into this 95% extra people, where the big bucks are made, okay, how we're making that happen, how we're setting it all up, go ahead and register for the class. It's free. If you go to 100mwebinar.com, you will be able to register for the class. It's completely free. We have a new class upcoming. Pretty soon, we do them live from time to time. So if you want to register, go to 100mwebinar.com. There's going to be a link somewhere around here, and in that class, I'm going to share with you why we've been using this strategy for the past almost five years now, four or five years now, and we're bringing great results to our clients. And we also teach that to our coaching students at our coaching programs. Okay, so go ahead, check it out. It's great. Check out these articles. Great. Subscribe to stackmarketer.com again. I think it's stock. Marketer.com. But it's a great newsletter. You will be able to get a lot of value out of them. Again, I'm not affiliated, but those guys are bringing in so much value that it's crazy not to subscribe to them. And it's free. It's also free. Okay. So for now, I don't know if they're going to charge at some point, which they should charge because it's really good stuff. Anyways, register for the free upcoming class, 100mwebinar.com. I hope to see you guys there. Going to be taking some Q&A at the end. So if you're running Facebook ads, you want them to run better. If you have an agency and you want to add Facebook ads as a service to your agency, if you are a media buyer, a freelancer, or if you manage and coach media buyers, or if you're an entrepreneur that wants to learn how to basically crush and dominate with Facebook advertising, getting awareness into that 95% of people that are not ready to buy right now but might give you money down the road. Go to 100mwebinar.com, register for the free class. I hope to see you guys there. Thank you so much. Hope that everyone has an amazing rest of your day, rest of your week. Have a killer day. Talk to you guys soon.
