The 95/5 Rule in Marketing: Why Most of Your Audience Isn’t Ready to Buy (And What to Do About It)

If you’re a marketer, here’s a humbling truth: at any given moment, the vast majority of people you’re trying to reach aren’t thinking about buying what you sell.

This is the core of the 95/5 rule in marketing, a powerful heuristic that reframes how we think about demand, brand, and budget. It’s a vital wake-up call, reminding us that while we might believe everyone needs our product, in reality, only about 5% are actively in-market to buy right now. The other 95%? They’re not ready—yet.

Where Did the 95/5 Rule Come From?

The rule was formally introduced in 2021 by marketing researcher John Dawes in an article entitled “Advertising effectiveness and the 95-5 rule,” distributed by The B2B Institute (a think-tank backed by LinkedIn). It’s based on a simple average of purchase cycles. For instance, if a B2B service is re-evaluated every five years, roughly 20% of buyers enter the market in a given year. Break that down further, and it becomes about 5% in a quarter.

Crucially, the authors don’t present this as a universal law. It’s a rule of thumb—a lens to understand the timing of demand and the critical balance between long-term brand building and short-term sales activation. The actual ratio fluctuates based on your industry, product type, and purchase frequency.

What This Rule Really Means for Your Strategy

The 95/5 rule isn’t just a statistic; it’s a strategic directive with several key implications:

• Your Audience is Mostly "Future Buyers": Most people who see your ad or content today aren’t shopping. They’re in learning, browsing, or completely unaware mode.

• Brand Building is Non-Negotiable: When the 95% eventually enter their buying window—which could be months or years from now—they’ll gravitate toward the brands they recognize, remember, and trust. Your top-of-funnel work today builds that memory.

• Performance Ads Alone Are Insufficient: If you only target the active 5%, you’re ignoring nearly all of your future potential. You’re fishing in a very small pond.

• You Need a Dual Strategy: Long-term demand creation (brand, memory, mental availability) must work in tandem with short-term demand capture (performance ads, promotions).

How to Apply the 95/5 Rule: B2B vs. B2C

While the principle is universal, its application differs between B2B and B2C contexts.

B2B Application: Playing the Long Game

In B2B, sales cycles are long (often 3-18+ months), decisions involve committees, and a company may only need your solution once every few years. The 95/5 rule is especially critical here.

What it means: Only a tiny fraction of your total addressable market is actively searching for a solution like yours right now. The rest will enter the market later, and brand memory will heavily influence their consideration set.

How B2B companies apply it:

1. Heavy Investment in Brand-Building: Building familiarity before demand exists.

   • Example: LinkedIn thought leadership campaigns, category-defining content ("The Future of Work"), and consistent visual/verbal brand identity.

2. Nurturing the 95% with Broad-Reach Content: Creating memory structures, not immediate leads.

   • Example: Industry podcasts, educational webinars, insightful whitepapers, and high-level research reports.

3. Capturing the 5% with Precision: Targeting those signaling active intent.

   • Example: Google Search Ads for solution keywords, detailed comparison pages ("X vs. Y"), and product demo sign-ups.

B2B Examples:

• HubSpot: Built the "Inbound Marketing" category (brand) while capturing active searchers with CRM demos and search ads (activation).

• Salesforce: Hosts the massive Dreamforce event for broad reach (brand) and uses targeted sales outreach for in-market accounts (activation).

B2C Application: Winning the Moment of Need

B2C buying cycles are shorter, but the rule still holds: only 5% of people are shopping for a mattress, a car, or insurance today. Brand matters because when that need arises, people choose what they recall.

What it means: Your marketing must stay top-of-mind during long consideration periods so you’re the first brand remembered when the need strikes.

How B2C companies apply it:

1. Mass Brand Advertising for Memory: Creating emotional connections at scale.

   • Example: TV ads, TikTok/YouTube storytelling, and large out-of-home campaigns.

2. Light but Persistent Performance Marketing: Scooping up the ready-to-buy segment.

   • Example: Google Shopping ads, retargeting banners, and "near me" search ads.

3. Strong, Distinctive Brand Codes: Making recall effortless.

   • Example: The Geico gecko, Coca-Cola red, or McDonald's golden arches are visual shortcuts that keep the brand accessible in memory.

B2C Examples:

• Geico: Uses the ubiquitous Gecko and humorous TV ads (brand) paired with aggressive search ads and quote tools for shoppers ready to switch (activation).

• Apple: "Shot on iPhone" campaigns celebrate lifestyle and creativity (brand), while product launch events and store promotions convert immediate demand (activation).

At a Glance: The 95/5 Rule in Action

Aspect	B2B Focus	B2C Focus
Buying Cycle	Long (Months to Years)	Medium to Short
Why 95/5 Matters	Very few are in-market at any one time	Still, very few are in-market at any one time
Brand Focus	Thought Leadership, Category Creation	Emotional & Visual Brand Building
Activation Focus	Demos, Intent-Based Search, Retargeting	Coupons, "Near Me" Search, Retargeting
Success Measure	Pipeline Growth + Long-Term Market Awareness	Market Share + Brand Recall & Salience

The Bottom Line

The 95/5 rule frees marketers from the tyranny of the immediate conversion. It validates investing in the future. By balancing your efforts—building brand for the 95% who will buy later, while efficiently capturing the 5% buying now—you create a sustainable growth engine that drives both tomorrow’s revenue and today’s.

Are you over-investing in the bottom of the funnel while your future customers forget your name? The 95/5 rule suggests it’s time to rebalance.