The explosion of messages, proliferation of channels, and a dizzying array of product choices have made it nearly impossible for brands to be seen and heard above the fray. At the same time, marketing budgets are under increasing scrutiny and pressure to deliver results, now.
So, what’s a marketer to do?
The solution over the past decade has been a dramatic shift from long-term brand building to data-driven marketing with an emphasis on optimization and short-term results. While this move has made advertising more efficient, it has also proven to make efforts far less effective.
According to a study published in the book, Media in Focus: Marketing Effectiveness in the Digital Era by Les Benet and Peter Field, since 2012, advertising effectiveness has decreased by 50%.
Today, too many organizations take siloed approaches to brand and demand initiatives, failing to maximize the short-term benefits of demand marketing with the long-term impact of brand building.
At Modern Climate, we believe successful marketing must carefully integrate brand and demand strategies. This will provide organizations a way to boost advertising effectiveness and reach people where they are, when the time is right.
A strong and well-defined brand has multiple benefits to reach customers in a noisy landscape:
A strong brand creates top-of-mind awareness and the ability to be thought of effortlessly (and positively) when it comes time to buy.
This is especially important in B2B marketing where up to 95% of prospects are not in the market for goods and services at any given time, and decision times are generally elongated over those in B2C decisions.
By focusing only on short-term demand strategies, marketers miss the opportunity to build brand awareness and loyalty among the vast majority of potential customers.
If brand is more about “why buy us,” demand focuses on “why buy this one, at this time.”
Demand is essential because it creates urgency around specific products and services. It focuses on connecting with the right people, at the right time, with relevant messages that move interested prospects to immediate sales.
Demand strategies also leverage long-term investments by efficiently converting brand equity into short-term results.
Finding the right balance of brand and demand differs for every marketer based on several factors, such as:
Without a balanced approach that includes both brand and demand tactics, brands sacrifice performance up and down the funnel. If there is too much emphasis on brand, pipelines may fill but leads may not convert. If demand is over emphasized, future sales may suffer because of lack of interested prospects in the pipeline.
Smart marketers recognize that when brand and demand work in unison, they can:
For an in-depth look at marketing best practices in the changing digital landscape, Media in Focus: Marketing Effectiveness in the Digital Era is the latest analysis by leading marketing effectiveness researchers Les Binet and Peter Fields.
The authors focus on timely topics, including:
They also look at emerging measurement strategies such as econometrics that can help better pinpoint and isolate the impact that a variety of marketing activities have on sales and profitability.
Media in Focus: Marketing Effectiveness in the Digital Era is a must-read for every marketer. Reach out today to Andrew Donlan, he’ll be happy to send a copy your way.