THOMAS BAUER joined McKinsey in 2001 and is based in Munich. As a Senior Expert in McKinsey's marketing strategy group he serves clients across industries and geographies on topics such as marketing spend effectiveness and brand management. Thomas co-leads the Marketing Navigator, a McKinsey technology solution for marketing performance optimization. TJARK FREUNDT is a Partner in McKinsey's Hamburg office. He joined McKinsey in 2001 and is co-leader of the EMEA Marketing and Sales Practice. Tjark leads McKinsey's global service line for brand management and marketing effectiveness. His main areas of activity are logistics, energy, and chemicals. He is the author of many articles and books such as Power Brands. JONATHAN GORDON is a Partner in New York. He joined McKinsey in 1995 and is the leader of the global marketing strategy service line. He helps consumer companies construct marketing strategies and build capabilities that drive top-line growth, spanning financial services, packaged goods, and automotive. JESKO PERREY is a Senior Partner at McKinsey and based in Dusseldorf. He joined McKinsey in 1999 and is global leader of the Marketing and Sales Practice. He serves clients across multiple industries and a broad range of topics such as commercial transformation, marketing ROI, branding, customer experience, digital marketing, and advanced analytics. He is the author of Power Brands and Retail Marketing and Branding. DENNIS SPILLECKE is a Senior Partner at McKinsey and based in Cologne. He joined McKinsey in 2001 and is leading the German Marketing and Sales Practice. He serves clients across multiple industries and a broad range of topics such as advanced analytics, commercial transformation, marketing ROI, branding, and digital marketing. He is the author of Power Brands and Retail Marketing and Branding.

Introduction: Smart Money vii

How much should I invest?

1 Budget sizing: Combine multiple lenses to right-size your marketing budget 1

2 Allocation: Put your money where your strategy is 19

How should I shape my messages?

3 Insights: Discover what really matters to consumers to sharpen your proposition 35

4 Storytelling: Take a publisher's mindset and tell stories that cut through the clutter 51

How will I reach my target group?

5 One currency: Compare apples to apples as you make trade-offs between instruments 71

6 Science: Apply advanced analytics to drive fact-based mix optimization 89

How do I ensure excellence in execution?

7 Smart activation: Trim the fat off key instruments to drive incremental benefit 107

8 Partners: Build performance partnerships with marketing service providers 127

How can I drive change and sustain impact?

9 IT solutions: Use marketing ROI decision support solutions to transform your company 143

10 Agility: Infuse your organization with a return on investment mindset 159

Credits 177

Index 179