The common question about investing in Brand building is “What is the ROI”? Because the metrics of Brand marketing are not straightforward and not be able to be presented in quarterly/monthly reports to the management – this question rarely gets an answer.
But is it the right way? Just because a question is not answerable in a “defined time frame”.
Moreover, there are data-backed studies that recommend 60:40 as the ratio to be applied to the Marketing budget – 60% for Brand marketing and 40% for sales activation. If we deep dive further the ratio will differ with different categories and with stages of the businesses as well. But the principle of Brand marketing and sales activation is sound and clear.
Brand marketing activities have to be moved first and sales activation campaigns to follow suit.
Regarding performance marketing without the Brand backup – You buy ads from the online platforms and you make some numbers seem working. Like, 1 in 100, 1 in 1000 or 1 in 5000 converts. Because there is one working you increase the denominator. But that is neither sustainable nor does it contribute to building your Brand or very little. Your product has to fight alone as well.
A well-written blog by Rand Fishkin about the online ad ecosystem.
With the above premises in place, let’s look at a different approach that likely should help you make an informed decision.
You have products that get sold in the market and revenue is happening. You want to scale up – You have a desire to own up a share in the market down the line.
This means,
There is an addressable and obtainable market that is likely going to grow for a foreseeable time – Market study. You or your marketing team have the will and commitment to do all the necessary marketing activities to make your share a reality. Ie., Focusing on Brand building as well as sales activities.
A. You have the current set of customers
B. You have let your current and next market know your Brand through Brand marketing initiatives. You are going to sell to them.
C. D & E – Subsequent available markets
When you bring in clarity, there can be no question about Brand marketing. “How” questions are discussion-worthy. “Why” is the most important question I tried to answer. Hope this helps you.
Tags: Brand Building, Marketing Strategy, Brand Awareness, Sales Activation, Performance Marketing,
