Okay, so a slight click bait approach on the headline front but bear with us… having founded and run a successful brand-led agency for over 17 years, we still find that the biggest challenge most marketers face is getting stakeholder buy-in for anything brand-led.

Measuring brand traction is probably easier than it’s ever been, but it’s still really hard to demonstrate what level of return brand investment will deliver. Unlike CTRs, database growth or tactical-led sell through rates; branding is still perceived as a bit of a dark art. And yet, businesses are built and sold on the strength of brand. Customers connect with brands on an emotional level. Branding can make a one-man-band look like an international organisation and demand pricing that goes with that. Ultimately, your brand can not only attract customers, it can also keep them; so why is it so hard to justify investment?

Ultimately, it’s often about the perception of short-term Vs long-term value, assigning resources, and as already flagged, measuring outcomes. 

Short-term financial focus.

At board level, particularly with members who might be from financial or operational backgrounds, the focus is usually prioritised to short-term financial performance over long-term investment. Branding and building brand equity isn’t a quick fix and so typically falls into the long-term camp. Boards are frequently focused on quarterly results, profits and shareholder returns, which not only mismatches the timeframes of a brand but also leads to hesitation and justification of committing significant resources to branding.

Soft asset perception.

Branding is often seen as an intangible asset, something that’s hard to justify compared to investment in technology, infrastructure or acquisitions. It’s often seen as an abstract concept tied to (the more measurable) channel marketing or aesthetics, which might not be as easily valued compared to assets that directly affect operational efficiencies or growth.

Measuring ROI.

Probably the biggest challenge with brand investment is that its return can be really hard to quantify. Unlike sales-driven marketing campaigns that have clear and immediate metrics, the impact of branding is usually qualitative, built over time through increased brand equity, customer loyalty or market differentiation. The lack of immediate metrics can make stakeholders cautious and they might not see a direct financial impact for some time.

Old-fashioned brand think.

Not everyone ‘gets’ marketing or branding. There could be outdated views in the boardroom about what branding is, or what it entails. A more traditional view of a logo, tagline and the superficial aspects of branding is often more common than you might think. Modern branding is deeply rooted in a memorable customer experience, corporate culture and employee engagement. The gap in understanding can often lead to undervaluing branding as a strategic investment in isolation.

Competing Priorities.

In more challenging economic times, or through periods of growth, companies can often have limited budgets and resources, which means tough choices have to be made between different investments. Product development, mergers and acquisitions, cost-cutting or tech transformation, are usually seen as investments that will yield more immediate and tangible benefits. Branding might fall lower down the list, especially if a business is facing economic challenges.

Burnt by a previous brand investment.

If a business had previously invested in branding without seeing the desired results, there could well be board members who are wary of repeating what they see as a failure. Misalignment between brand strategy and business goals, or a lack of brand management and implementation can bring scepticism about any investment for the future.

Too risky.

Branding can often be seen as risky, especially if the brand needs some serious repositioning or visual revolution. The perception of alienating existing customers, or failing to attract new ones alongside initiatives that might not resonate with the market can bring risk aversion to the fore.

Product Superiority.

“It will sell itself.” Often there’s a belief that if a product is excellent it doesn’t really need extensive branding. This can often undervalue the role that branding plays in building customer loyalty, trust and differentiation.

Crisis Comms Vs Branding.

Sometimes, stakeholders might well perceive branding as a tool for reputational management or crisis comms. Yes it’s related, but branding is much wider, more proactive and ultimately shapes how a business is viewed over a period of time. If branding is seen as a reactionary tool then stakeholders might not prioritise the brand as an ongoing investment.

 We’re market leaders, so why do we need branding?

When you’re number one in the market it’s sometimes impossible to get investment in branding, but resting on your laurels can lead to complacency. Even the world’s leading brands need continual investment in maintaining and evolving their brand equity. They can also, sometimes, get it wrong with quite serious commercial implications.

Ways to get board-level buy-in.

Branding should never be an isolated project, it needs to be an inclusive investment that takes everyone from board level to starting roles on a journey (there’s a Truth Lab for that). The brand needs to be believed and shaped by the people who use it every day. That’s ultimately how you get a bunch of brand guardians who believe in what you’re trying to do. Brands are built internally, not forced onto an organisation that won’t embrace the purpose of your investment. And, in convincing board members of the value of branding, it’s really important to present it as a strategic investment with long-term business benefits. It’s about presenting the value of branding in the right way…. So if the brand investment costs around 10% of turnover but has an overall growth rate above that, then it’s worth it.

The benefits of brand investment might include:

• Data-driven insight: how the brand can positively impact revenue, customer loyalty and market share.

• Case studies of other companies who have leveraged branding for improved business performance.

• Decide on the measurement up front. Think brand awareness, customer retention and brand sentiment. There are lots of cost-effective tools nowadays to measure this over a hefty investment in qualitative research groups.

• Demonstrate how branding supports wider business objectives like expansion, NPD, stretch or customer strategies.

How challenging do you find getting investment in branding?
If you are in need of support or how to get buy-in, just get in touch.