With no lack of short term revenue goals to meet, businesses have always stopped to question the return on investment (ROI) gained from brand work. How much should be invested in pure brand activity versus more tactical, product focussed work? And what can companies expect in return? We discuss the real ROI of brand marketing and reveal top line results from our recent study of over 50 marketing leaders who recently undertook successful brand campaigns. We look at examples of brands who are crushing it and also provide a rebrand checklist for those looking to shake things up.
What is the ROI of Brand Marketing?
Establishing exactly what we mean by the ROI of brand awareness is a good place to start. Brand ROI is the return on investment you gain when the primary objective of your activity is to promote and strengthen your brand. This includes not only direct financial returns, such as increased sales and revenue, but also long-term benefits like enhanced brand recognition, customer attitudes, market share, and the ability to command premium pricing. Effective brand advertising creates a strong, positive perception of the brand, which in turn drives customer loyalty and sustained business growth over time.
Unlike product and price or feature driven marketing, the effects of brand marketing might not be immediate or as singularly quantifiable, but they can be far more sustainable and impactful to the bottom line over time.
Brand advertising is currently going through a renaissance with budgets being pulled away from other areas, particularly performance marketing. In a recent article on Digiday, Brandy Alexander, Managing Director of performance marketing outfit TandemTide acknowledged “Brand marketing is like asking consumers to fall in love with you. Performance marketing is like asking consumers for a one-night stand, it’s transactional.” Ultimately, the two must work together, she added. Meanwhile YouTube recently attributed its 13% rise in ad revenue to increased brand advertising and direct response. In summary, brands cannot afford to focus only on bottom of the funnel marketing.
What Type of Brand Marketing Will Deliver Results?
Making your logo bigger or dotting it more frequently throughout your campaigns won’t generate a decent Brand ROI. Why? Because a brand isn’t just a logo mark or visual ID. It is your essence – it’s what defines you – and that feeds into how your audience connects with you. Brand Marketing ROI is achieved by drawing from a much deeper well. Great brand work that taps into customers’ emotional needs is far more likely to achieve high brand awareness ROI. At the end of the day, the heart plays a significant role in driving consumer behavior. Once you hit a connection you foster a deeper, more meaningful relationship that leads to increased loyalty, word-of-mouth referrals, and a stronger brand identity. Brands that tell the story about who they are, what makes them different and then roll that into a good experience for their customers are more likely to achieve compounding ROI.Can Investing in Brand Help Grow Revenue & Lower Customer Acquisition Costs?
We surveyed marketing and brand leaders on brand impact and ROI. Respondents were from some of the world’s most influential companies with a combined valuation of $500 billion. Industries represented spanned banking, energy, financial services, food manufacturing, gaming, government, insurance, healthcare, higher education, hospitality, mining, real estate, SaaS and transportation. Our research demonstrated well-executed brand investments can help companies establish a strong, recognizable identity that not only differentiates it in a crowded marketplace but delivers tangible outcomes. Depending on the market, brands can help companies command a price premium, as customers are often willing to pay more for products and services they perceive as higher quality or more reliable. This premium not only boosts profitability, but also provides a buffer against market volatility and economic downturns. Furthermore, a well-established brand attracts top talent, boosts morale, fosters partnerships, and opens doors to new opportunities, enhancing overall business growth. A strong brand also communicates values and promises, creating a consistent experience that reinforces customer expectations and enhances overall satisfaction. And better still, when brand salience is high, your media spend can become more efficient. A well-known brand that resonates well with buyers can lower acquisition cost. Brand advertising lays a foundation for sustainable success and a resilient market presence.Advertisers are realizing that even in challenging economic times, investing in brand identity is an investment in the future.How Are Brand Leaders Measuring the ROI of Their Brand Campaigns?
Measuring the ROI of brand campaigns involves a multifaceted approach that includes quantitative metrics such as audience reach, engagement rates, web traffic, and sales impact, as well as qualitative feedback from stakeholders and customers. By utilizing these methods, companies can effectively assess the success of their campaigns, refine their strategies, and ensure their marketing efforts drive meaningful business results. Below is a topline from our marketing leaders survey, more details can be found in our recent ‘ROI of Brand’ E-Book. Growth measurement was assessed most commonly via qualitative data, social media, digital engagement, website metrics and press coverage. To a lesser degree, Brand ROI was measured via sales impact, content adoption, and advocacy and community engagement.
What’s Driving the Shift Toward Brand Marketing?
While our survey results showed the ongoing ROI of brand marketing, we also asked respondents to tell us the business objectives behind their decision to allocate budget to brand. Analyzing the provided campaign details revealed several common business objectives cited by marketing and brand leaders. Listed below are the top responses, however keep in mind these objectives not only guide the campaign strategies but also serve as key performance indicators to measure brand ROI.
Raising the profile of the brand in the target market was the most common business objective in the survey. It’s easy to see why this was so common: while clearly a “brand” initiative, it’s by far the easiest metric to measure.
In some cases, innovations are so cutting edge that market demand does not yet exist. In such cases, brands set out to inform and educate potential customers about specific products or services. Others set out to specifically address misconceptions in the market that would favor their products or services.
The third-most common objective was to shape public perception and build a positive brand image. For example, a public university set out to spark enrollment growth by positioning the school as a progressive, student-centric institution.
Nearly every campaign sought to expand market presence and drive sales growth as a secondary business objective. This is a key difference from “performance campaigns,” which would seek to do that without any of the brand-related associates or benefits listed above. B2B companies surveyed specifically set out to influence the sales pipeline, generating substantial leads and accelerating deal closures.
Can Investing in Brand Lead to Long Term ROI?
Here are examples of brands of different sizes that have invested in brand advertising, leading to not only ongoing but compounding business growth:
Oatly, an oat milk company, invested in bold and quirky brand advertising that differentiated it from other dairy alternatives. Their straightforward and often humorous approach to marketing, combined with a strong stance on sustainability, helped Oatly build a cult following. By positioning itself as a lifestyle brand rather than just a food product, Oatly expanded rapidly in markets around the world.
Impossible Foods recently worked with creative agency Jones Knowles Ritchie, to produce a brand campaign that welcomed meat-eating and flexitarian consumers. Inspired by the craveability of meat and its association with the color red, their strategy not only distinguished Impossible from other plant based brands, but also squarely positioned Impossible in the meat aisle. This brand work challenged preconceived notions of what defines “meat” – and encouraged meat eaters to do the same.
The brand team focused on emphasizing the fact that Owner-Managers are the heart and soul of the BOQ brand and drew inspiration from the real-life stories their focus groups unearthed. These stories centered around bank staff going the extra mile came up again and again. Moving through iconic Queensland locations that captured the diversity of the state and BOQ’s customers, characters shared the story of, “did you hear the one about the BOQ branch manager who…?”
The team has measured business impact meticulously with the campaign resulting in an increase in brand awareness, new business leads, social engagement and increased take up of some of BOQ’s core products.
GoodRx
GoodRx is a platform that helps consumers find the lowest prices on prescription drugs. Their brand advertising focused on affordability and transparency in the healthcare system, appealing to those struggling with high medication costs. GoodRx used a combination of TV ads, digital marketing, and partnerships with healthcare providers to raise awareness of their service. By positioning themselves as a consumer advocate in the complex healthcare landscape, GoodRx quickly gained a loyal user base and became a key player in the healthcare sector.
L’Oréal’s “Because You’re Worth It” campaign was revolutionary in its focus on female empowerment and self-confidence. The slogan emphasizes the idea that women deserve to pamper themselves and invest in their beauty. This message of self-worth and empowerment has resonated with consumers for decades and continues to be a central theme in L’Oréal’s marketing.
Allbirds, known for its eco-friendly wool sneakers, invested in brand advertising that emphasized sustainability and comfort. Their messaging focused on the environmental impact of their products, appealing to consumers looking for sustainable fashion choices. Through effective use of digital marketing, partnerships with environmentally conscious influencers, and a commitment to transparency, Allbirds quickly gained a devoted following and expanded globally.
Glossier, a beauty brand that started as a blog (Into The Gloss), leveraged brand advertising that centered on community-building and customer feedback. Their “Skin First. Makeup Second.” philosophy resonated with millennials and Gen Z, who appreciated the brand’s focus on natural beauty. Glossier’s minimalist branding and strategic use of social media influencers created a loyal customer base, leading to significant growth and establishing it as a major player in the beauty industry.
Dove’s “Real Beauty” campaign, launched in 2004, marked a significant shift in brand advertising by challenging traditional beauty standards and promoting body positivity. This campaign resonated with a diverse audience, leading to increased brand loyalty and a broader market share. Dove’s focus on empowering consumers and addressing social issues has contributed to long-term brand growth and a stronger emotional connection with its audience. 20 years on, the brand still holds the same values and campaign line.
The “Taste the Rainbow” campaign for Skittles brilliantly captured the array of flavors in each pack through a sensory experience. It elevated the taste association by linking the vibrant colors to a spectrum of fruit flavors. Combined with catchy up beat music and lighthearted messaging, the iconic slogan is associated with a memorable and fun experience.
These brands have all invested in advertising strategies that go beyond just promoting products—they’ve built emotional connections, reinforced brand values, and created a strong brand identity that resonates with consumers, leading to long-term business success.
How Can You Maximize Your Brand Marketing ROI?
If you want to increase your brand marketing activity, yet are unsure about the current health of your brand, we suggest conducting a brand audit. This involves a full review of:
Customer Perceptions
Understanding how customers perceive your brand, including brand awareness, brand loyalty, and brand association.
Evaluating your brand’s current position in the market relative to competitors, considering factors like price, quality, and overall brand image.
Measurement Assessing your brand’s value based on consumer perceptions and market performance.
If you decide to rebrand or make brand changes, being aware of the task ahead of you is important. We’ve put together an editable rebrand checklist that provides a structured framework for you and your team to organize tasks, deadlines, and responsibilities throughout the rebranding process. It helps keep everyone on the same page and ensures visibility and accountability.
After your audit, there are several best practice steps to follow:
Leverage Data-Driven Insights
- Why It Matters: Utilizing data analytics allows you to make informed decisions about where to allocate your marketing budget for the greatest impact. By analyzing customer behavior, market trends, and campaign performance, you can identify which strategies are driving the most value and adjust your efforts accordingly.
- How to Do It: Invest in tools that offer real-time data on customer interactions, campaign effectiveness, and market shifts. Regularly review these insights to refine your marketing tactics and ensure they align with your business objectives.
Invest in Consistent Brand Messaging
- Why It Matters: Consistency in messaging across all touchpoints ensures that your brand communicates a cohesive story, which strengthens brand recognition and trust. This consistency can significantly enhance the effectiveness of your marketing efforts and, in turn, your ROI.
- How to Do It: Develop clear brand guidelines that define your tone of voice, visual identity, and key messaging. Ensure these brand guidelines are centralized and accessible in a brand portal all marketing materials, whether digital, print, or social, adhere to these guidelines. Link your brand guidelines to marketing workflow and operations software that houses all approved creative assets. This allows everyone to only use approved content and provides a system for markups and approvals.
- Why It Matters: A positive customer experience not only fosters loyalty but also turns customers into brand advocates, amplifying your marketing efforts organically. Satisfied customers are more likely to make repeat purchases and recommend your brand to others, thus driving higher ROI.
- How to Do It: Focus on improving every aspect of the customer journey, from initial contact through post-purchase follow-up. Use customer feedback to identify pain points and make necessary adjustments. Personalized marketing and exceptional customer service can also play significant roles in enhancing the overall experience.
- Why It Matters: With more consumers engaging with brands online, a strong digital presence is critical to maximizing your Brand Marketing ROI. Effective digital marketing can reach a larger audience and deliver more targeted and measurable results.
- How to Do It: Optimize your website for SEO, maintain an active presence on social media platforms, and utilize paid digital advertising strategically. Consider leveraging content marketing, influencer partnerships, and email marketing to engage your audience and drive conversions.
- Why It Matters: The marketing landscape is constantly evolving, and what works today may not work tomorrow. Regular monitoring and optimization of your marketing strategies ensure that you’re always maximizing efficiency and effectiveness, leading to better brand ROI.
- How to Do It: Set up KPIs to track your campaigns and regularly review them to identify areas for improvement. A/B testing, customer feedback, and competitive analysis are all tools that can help you fine-tune your strategies.
