Branding is the New Performance…
In an era where 3rd party cookies are becoming obsolete, the art of branding has evolved beyond mere awareness at the top of the funnel. It has become a powerful tool that shapes consumer behavior, fosters trust and credibility, and propels sales. The digital revolution has not diminished the significance of brand building; rather, it has amplified it.
The classic debate between the Chief Marketing Officer (CMO) and the Chief Financial Officer (CFO) or Chief Revenue Officer (CRO) often revolves around the value of the last click or touch versus the entire customer journey. However, a wealth of data supports the idea that long-term brand building is not just a vanity project—it's a catalyst for sales.
Take Mercedes Benz as an example. The luxury car manufacturer boasts a customer lifecycle that spans over two decades.
In the banking sector, the average person remains loyal to their bank for a longer duration than their marriage—17 years compared to 11 years. A remarkable 59% of young adults aged 18–24 choose to bank where their parents do, highlighting the enduring power of brand loyalty.
This data suggests a crucial shift needed in marketing strategies—from focusing on short 1–2-month sales cycles to adopting a broader vision that lays the groundwork for growth over the next 12, 18, or 24 months.
Brands thrive by expanding their reach, but it's the quality of that reach that truly matters. Not all exposure is created equal. The impact of creative attention, quality, and visibility is paramount.
Digital marketing, once limited in scope, has matured into a vast landscape teeming with opportunities for brand building. By amplifying a unified message across diverse channels—CTV/OTT, music and podcasts, news, lifestyle, and Digital Out-of-Home (DOOH)—brands can significantly enhance the effectiveness of their messaging compared to isolated efforts.
An effective omnichannel campaign encompasses every stage of the funnel. While these stages can operate concurrently, they should also unfold in a logical sequence. In the post-pandemic era, evidence suggests that customer journeys are far from linear; they are dynamic and complex.
Marketers must therefore embrace an omnichannel strategy that balances long-term brand building with tactical, short-term sales activations, connecting with prospects across every touchpoint.
The digital advertising landscape is undergoing seismic shifts. Browser updates and the decline of third-party cookies—once the linchpin of digital advertising—are challenging traditional data collection methods. Firefox and Safari have already implemented measures that hinder cookies, and Google Chrome's impending transition away from third-party cookies signals an 86% loss in tracking capabilities.
Global governance regulations are evolving to empower consumers with control over their data. By 2023, it's predicted that 75% of the world will be subject to data and privacy regulations, up from just 25% in 2021. This regulatory shift makes data collection increasingly challenging for brands, necessitating a reevaluation of first-party data strategies and customer relationships.
Social media advertisers who fail to adapt to these changes risk facing surging media acquisition costs—potentially up to a 150% increase. This projection is based on an internal study by Meta, which found a significant rise in the cost per action (CPA) when shifting from conversion optimization to link-click optimization.
The pandemic spurred many media owners to invest in digital infrastructure, transforming their most profitable boards into digital formats. This pivot has fueled the rapid expansion of DOOH, enhancing the quality of sites, inventory management, and creative delivery. As a result, DOOH has emerged as a powerful medium for brand storytelling.
In an era of fragmented digital and television audiences, DOOH stands as the last bastion of mass reach, capable of delivering large-scale audiences and bridging the gap between online and offline attribution. It serves as the final window of influence, extending a brand's reach to the point of purchase and capturing the audience at the pivotal moment of decision-making.
Branding is no longer just a marker of identity; it is a strategic performance instrument that, when wielded with precision, can orchestrate market success and enduring customer loyalty.
Recommendations for Brand CMOs & their AOR:
Elevate Brand Awareness: Treat brand awareness not just as a metric but as a strategic asset. Incorporate it into your KPIs to reflect its influence on consumer behavior and long-term sales growth. Consider Always On campaigns as part of your media plan.
Holistic Funnel Integration: Ensure that brand awareness is not siloed but is considered across the entire marketing funnel. Recognize its role in driving both initial engagement and sustaining long-term loyalty.
Omnichannel Alignment: Align brand awareness efforts with an omnichannel strategy. This ensures consistency in messaging and maximizes impact across all consumer touchpoints.
Data-Driven Decisions: In the face of evolving data privacy regulations and signal loss, leverage robust first-party data to inform brand awareness strategies and measure their effectiveness. Marketers need to make good & accessible first party data a priority.
Adapt to Media Changes: Stay ahead of the curve by adapting to the shifting media landscape by having a strong focus on Test & Learn initiatives- particularly with the rise of Digital Out-of-Home (DOOH) & Connected TV, which offers a unique opportunity for brand storytelling at scale.
Customer Journey Insights: Utilize insights from dynamic customer journeys to refine brand awareness tactics, ensuring they resonate with consumers' non-linear paths to purchase.
By prioritizing brand awareness within KPIs, CMOs can craft a narrative that not only captivates but also converts, fostering a brand that resonates with consumers today and retains them tomorrow. This approach will not only enhance your brand's market presence but also ensure its longevity in an ever-evolving digital landscape.