Category Demand Calculator

How your category's growth rate and buyer journey length change who's actually in-market, and what that means for your budget.

The 95:5 rule says that in a category bought about every five years, up to 95% of B2B buyers are out of the market in any quarter. John Dawes of the Ehrenberg-Bass Institute derived it as a rule of thumb for stationary markets: stable categories where the pool of potential buyers doesn't change much year to year.

Dale Harrison's model shows what happens when it does. In growing categories, first-time buyers flood the in-market pool continuously. They have no vendor preferences yet and aren't on your retargeting list, and their share of the in-market pool grows as the category grows faster.

The in-market pool splits by buying stage. Kerry Cunningham's 6sense research finds buyers get most of the way through a purchase before they contact a seller. In this model, the buyers in the Awareness and Consideration stages haven't contacted a vendor or searched for one by name, so retargeting and intent tools mostly miss them. That window is the dead zone: real buying momentum your tools can't see yet.

The longer the buying journey in your category, the larger the dead zone. In this model, a 3-month journey has almost none. A 12-month journey means three-quarters of all buyers in evaluation aren't showing up in your intent data yet.

Set the four inputs for your category.

Growth rate model by Dale Harrison: "Category Growth Breaks the 95:5 Rule" (LinkedIn, 2026). Buying stage framework by Kerry Cunningham (6sense B2B Science Series). Introduced in Open Folders: How markets actually grow →

Four inputs Adjust for your category. Outputs update in real time.
Annual category growth rate 20%
−50% declining 0% flat 100% 200% hyper-growth
% of budget on performance marketing 80%
0% (all brand) 50/50 100% (all performance)
Performance = spend chasing buyers already showing intent (search, retargeting). Brand = spend that builds awareness before intent exists. Budget here means media/demand gen spend, not the full marketing budget.
How often do buyers in your category actively shop for a new solution? every 5 yrs
1 yr 3 yrs 5 yrs 7 yrs 10 yrs
e.g. productivity tools ~1–2 yrs · marketing software ~3–5 yrs · CRM ~5–7 yrs · ERP ~7–10 yrs
How long does the typical buying journey last once triggered? 6 months
1 mo 6 mo 12 mo 18 mo
e.g. simple SaaS ~1–2 mo · marketing tools ~3–4 mo · CRM ~6–9 mo · ERP ~9–18 mo
Market composition by buying stage
Distribution across buying stages
~10% evaluating ~90% Target (not evaluating)
~5% active search (Decision + Purchase)
Budget reach vs. a 50/50 split (the model's peak)
Your reach: ~5% 50/50 split: ~10%
Target
Awareness
Consideration
Decision
Purchase
5%
Active
search
Decision + Purchase stages
5%
Dead
zone
evaluating, invisible to intent
0%
First-time
buyers
no vendor preference yet
7%
Buyers in motion
your split reaches
this quarter and next, in this model
The budget verdict

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How the math works

Active search (Decision + Purchase stages): Harrison's formula derives the quarterly flow of buyers entering active vendor evaluation. active = (25 / cycle) + ((1 + growth/100)^0.25 − 1) × 100. The baseline (25 / cycle) reflects purchase frequency: at a 5-year buying cycle, 25/5 = 5% of buyers are in active search at any moment, matching the original 95:5 rule. Shorter cycles raise the baseline; longer cycles lower it. Reproduces Harrison's published worked examples, assuming a five-year cycle: CRM at 13.4% growth → 8.2% active ✓; 100% growth → 24% active ✓. Harrison's formula covers growth; in a declining category this tool shrinks the replacement baseline with the category, so the in-market pool falls but never goes below zero. The buying journey is capped at the purchase cycle, and total evaluating never passes 100%.

Dead zone (Awareness + Consideration stages): Buyers who are researching but haven't started active vendor outreach or run a search query. When buying journeys exceed one quarter (3 months), buyers from prior quarters are still mid-journey, building a shortlist, without yet triggering any intent signal. deadZone = active × max(0, journeyMonths/3 − 1). At a 3-month journey, dead zone = 0. At a 9-month journey, dead zone = 2× the active search pool. At a 12-month journey, dead zone = 3× the active search pool.

Total evaluating: totalEvaluating = active × max(1, journeyMonths/3). Every buyer in any stage of evaluation right now: dead zone plus active search.

Stage mapping: The five buying stages (Target, Awareness, Consideration, Decision, Purchase) map directly to formula outputs. Target = out-of-market (100% − total evaluating). Awareness = first third of the dead zone. Consideration = remaining two-thirds of the dead zone. Decision = first half of active search. Purchase = second half of active search. These stage fractions are this tool's simplifying assumption, informed by Kerry Cunningham's 6sense research showing buyers get most of the way through a purchase before they contact a seller.

First-time buyers: New category entrants as a share of the active search pool. At 0% growth, all active buyers are replacement buyers. As growth rises, first-time entrants dominate. The buying cycle shifts the ratio: shorter cycles mean more replacement buyers relative to first-timers. The ratio holds across the dead zone and active search alike.

Budget reach: Performance marketing reaches active-search buyers (Decision and Purchase stages). Brand reaches dead zone buyers (those forming preferences before they search) plus the next wave of active buyers entering the market. perfReach = min(P×2, 1) × active. brandReach = min(B×2, 1) × max(deadZone, active). The two pools never overlap: buyers in the dead zone are the ones who will search next, and when journeys are short enough that there is no dead zone, brand's pool is next quarter's entrants, about the size of today's active pool. Peak total reach occurs at a 50/50 split, where both pools are fully covered. That peak comes from the model's own assumption, that each half of the budget can fully cover one pool, so read it as the logic of the trade-off rather than a measured optimum for your market. The model also counts only buyers in motion: this quarter's searchers, the dead zone and next quarter's entrants. Brand builds memory with the out-of-market majority too, which is the heart of Dawes's 95:5 argument, so the model understates what brand spend does. For measured benchmarks, Binet and Field's B2B analysis for the LinkedIn B2B Institute put the best split at about 46:54 brand to activation, and across the mostly consumer IPA databank it's around 60:40, varying by category. As journey length grows, so does the dead zone. A heavy performance weighting reaches a shrinking share of the buyers who are actually deciding.


From the newsletter

This model was introduced in Open Folders, a weekly newsletter on marketing science, measurement, and the gap between what the research shows and what teams actually do.

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