Brands and agencies have been increasingly focusing on performance marketing in recent years. However, a shift towards brand building is recently observed, driven in part by the easing of economic uncertainties and the growing challenge of standing out in the fragmented digital market.
Marketers, while still keen on performance marketing, are moving towards a more holistic approach, taking into account brand identity and strategy, brand affinity, and brand redesigns, according to agency executives and search consultants. They have witnessed a rise in requests for proposals (RFPs) regarding these brand-building aspects over the past few months and year.
JJ Schmuckler, the global chief growth officer at VML, noted that there is a “recalibration going on, especially in North America for new business opportunities.” She observed a shift from an emphasis on driving performance to a renewed focus on brand reinvention and refreshing.
Ken Robinson, a partner at Ark Advisors, added that brand is an “intangible asset on the balance sheet.” He claimed that his firm has seen more RFPs focused on brand efforts in the last 18 months than in the last 18 years of his career. However, not all the RFPs were seeking ad agencies; several were searching for brand consultancy partners.
Trevor Guthrie, the co-founder of Giant Spoon, suggested that the difficulty of standing out in the market was a significant factor in the shift towards brand building. Lisa Colantuono, the president at AAR Partners, echoed these views, stating that she believes the industry will see “a combination of brand and demand, where the top of the funnel and the bottom of the funnel are gonna collapse in the middle.”
Recognizing this shift, CMOs have started thinking long-term and are seeking partners to help with brand building. Greg Paull, partner at R3, affirmed the rising importance of delineating a brand’s ‘soul’ while also noting the rise of specialist agencies in social, data, and ecommerce.
In conclusion, the marketplace has evolved, with greater attention being paid to brand-orientated strategies. As a result, marketers are recalibrating their priorities towards a more balanced blend of performance marketing and brand building.
