Brand vs Performance - How to Hit 3x LTV:CAC Budget Allocation

BlueAlpha Field Notes

In this deep-dive conversation, EJ White (former Head of Growth at beehiiv) shares how they allocate marketing budgets between brand awareness and direct response channels to achieve their 3x+ LTV:CAC target.

Book a Demo: bluealpha.ai🎯 Key Topics Covered:● Budget Allocation Strategy- How beehiiv uses advanced attribution modeling to split budgets between signup-driving and revenue-driving channels- The daily metric EJ checks every Monday morning (hint: it's Stripe revenue)- Why volume and efficiency create an unavoidable tension in scaling marketing● Attribution & Measurement- The biggest attribution blind spot damaging marketing teams right now- Why Google and Meta's self-reported attribution numbers don't add up- How statistical modeling reveals the true impact of "dark" channels like video and display ads● The Brand Marketing Reality Check- Why most "direct" traffic is actually driven by brand awareness- How brand defense campaigns and organic search connect back to top-of-funnel investment- The hidden impact of video ads that don't leave digital breadcrumbs● LTV:CAC Optimization- How beehiiv tracks and evaluates LTV:CAC ratios in near real-time- Monthly cohort analysis and churn rate calculations- Balancing conversion optimization with maintaining healthy unit economics● Platform Attribution Problems- Why marketers don't trust statistical modeling (and why they should)- The "400 conversions reported, 200 actual sales" problem every marketer faces- How third-party measurement solves platform over-attribution💡 Key Takeaways:● Most marketing leaders underestimate the power of brand in driving "performance" metrics● Advanced attribution models can unlock budget for channels that seemed ineffective● The tension between growth volume and efficiency requires sophisticated measurement● Direct traffic, branded search, and even some paid traffic are often brand-drivenPerfect for marketing leaders, heads of growth, and anyone managing multi-channel marketing budgets who wants to move beyond last-click attribution.Timestamps:00:00 - Budget Allocation: Short-term Signups vs. Long-term Lift01:08 - The Monday Morning Metric01:50 - Volume vs. Efficiency Tension04:50 - Attribution Blind Spots & Top-of-Funnel Measurement Challenges08:30 - When Models Change Your Mind09:20 - The Brand Component of "Direct" Traffic11:08 - LTV:CAC Strategy and Optimization#MarketingAttribution #LTVtoCAC #MarketingMixModeling #PerformanceMarketing #BrandMarketing #MarketingStrategy #GrowthMarketing #PaidMedia #BlueAlpha