Because of the economic downturn in 2009, a lot of CMOs negated all long-term brand-building activity. At the time, it seemed ‘safer’ (and more desirable to the CFOs) to rather invest in measurable digital channels. The question is whether marketers have lost sight of the importance of brand marketing. We investigate the reasons why it is important not to lose sight of the power of brand building.
Smart Companies Will Focus on Boosting Long-Term Brand Building
Because one cannot always see a direct and measurable benefit between brand building and sales, it is common that brand marketing is very often not appreciated by the ‘boardroom’. Even Virgin Atlantic was one of the brands that scaled back on its budgets, and that focused its resources on “bottom of the funnel” performance marketing. The balance (or imbalance), however, will be redressed in 2018 by a reinvestment in brand building by Virgin.
Brand-marketing results will most often not be immediately evident or measurable. So, it is important to think long-term when it comes to brand building strategies, marketing campaigns and results.
Symbiotic Relationship Between Brand and Performance
While there are instances in which the corporate world can value brands, unfortunately, building a brand is more often seen as a cost to the business, as opposed to sales that are perceived as generating all the money. There is thus a constant need to remind the businesses and relevant role-players of the importance of having a strong identifiable brand. There is a symbiotic relationship between creating the desire for a brand and a business and securing the sale – smart clients understand the importance of both.
Building Up Branding can Make Activation More Efficient
Marketers (and boardrooms alike) should take note that brand advertising will have a positive impact on performance marketing. By improving on the brand’s health, its activation activity will be made much more effective. This is clearly demonstrated in the results achieved by Procter & Gamble, who between April and December 2017, cut $200 million from their digital media budget and redirected it to areas such as television, audio and e-commerce. This exercise increased their marketing reach by 10 percent!
You will be well advised to not lose sight of the importance of the brand. After years of exponential growth in digital ad revenues, now is the time to embrace long-term brand marketing in the boardroom. Contact WSI OMS for internet marketing services.