The Distinction Between Marketing and Advertising

A majority of business owners don't understand the fundamental distinction between marketing and advertising.

I see this all the time.

People see it as one big "machine". Put in a quarter and it gives you $1 worth of pipeline, they say.

This concept is not only false, its counterproductive to the long term growth of a business.

Ad spend is not a requirement for growth.

It represents a commodity you buy in order to grow.

Marketing spend isn't a requirement either, per se.

However, marketing spend can be considered any time or billable time spent on marketing tasks.

So unless your CMO is going to work for points and do everything by themselves, it's pretty standard to have marketing spend.

Marketing spend is a labor cost.

You are paying creatives, developers, designers, and software platforms.

Remember that.

• Ad spend = commodity purchase.

• Marketing Spend = Labor purchase.

Ad spend will get you more reach instantly, no matter what it is your trying to put in front of people.

If your marketing operations aren't ready for the increased reach, you're pouring that water you bought into a cheesecloth.

So don't wonder where it went.

"But Noah, how do I make my marketing department efficient?"

Build for the long term so you are not beholden to Google and Meta for reach.

Invest the marketing spend to create a system that can handle increased reach & traffic.

Then, when you're spending on ads you'll be able to actually take advantage of their main benefit (increased reach).