Branding Benefits Series: Brand ads can pull double duty in terms of long-term and short-term ROI
Brand ads, it turns out, are the best bang for your buck.
A four-year study of 20,000 advertisements has revealed that branding-based ads have a clear-cut advantage when it comes to performing double duty, while direct response ads do not.
This upends a long-held belief that long-term brand building is a fruitless endeavor with no immediate results and abstract long-term effects.
Branding ads are not only effective at achieving the purpose they are designed for, but they also bring about a tangible change in terms of encouraging people to act.
On the other hand, direct response ads are only really successful when it comes to prompting people to take action. They have little impact on increasing brand exposure or audience recognition.
Marketers should continue to invest in short-term sales activation because of the above-mentioned effectiveness in driving sales and action and its strong ROI.
However, there is a risk of over-investing in this kind of advertising, as it does not build the brand for future sales. It is thus imperative to strike the right balance between long-term and short-term investments.
The study helps to stress the fact that branding should no longer be ancillary. Long-term ads can have a short-term impact, making them an essential foundation to any marketer's strategy.
This findings reveal long-term brand building is not at odds with short-term performance; in fact, it can be mutually beneficial, especially when planned out against a long-term timeline.
Brand ads, it turns out, truly are the best bang for your buck.
A four-year study of 20,000 advertisements has revealed that branding-based ads have a clear-cut advantage when it comes to performing double duty, while direct response ads do not.
This upends a long-held belief that long-term brand building is a fruitless endeavor with no immediate results and abstract long-term effects.
Branding ads are not only effective at achieving the purpose they are designed for, but they also bring about a tangible change in terms of encouraging people to act. On the other hand, direct response ads are only really successful when it comes to prompting people to take action and have little impact on increasing brand exposure or audience recognition.
Marketers should continue to invest in short-term sales activation because of its aforementioned effectiveness in driving sales and action and its strong ROI. However, there is a risk in over-investing in this kind of advertising, as it does not build the brand for future sales. It is thus important to strike the right balance between long-term and short-term investments.
The study helps to stress the fact that branding should no longer be ancillary. Long-term ads can have a short-term impact, making them an essential foundation to any marketer's strategy.
This reveals that long-term brand building is not at odds with short-term performance; in fact, it can be mutually beneficial
In 90% of scenarios, investing in brand-building has the potential to both increase sales in the short-term and establish a top-of-mind awareness of the brand among prospective customers, which will lead to long-term success.
Despite the prevalence of direct response ads that promise quick results, there is a shift towards more sustainable strategies driven by a focus on long-term brand building among big brands.
These findings suggest that despite the uncertain economic climate, there may be a reallocation of resources to prioritize more effective, long-term marketing strategies.