Unveiling the Impact of Brand Investment on Financial Returns
In a recent report launched by Fospha, a leader in marketing measurement, it has been revealed that brand investment is a powerful driver of financial success, with an overwhelming 85% correlation to higher Average Order Value (AOV). The Glow Report introduces a revolutionary causal framework that allows marketers to link their branding efforts directly to tangible business outcomes.
Key Findings from the Glow Report
Fospha’s findings are crucial for marketers navigating the complex landscape of advertising. Here are some of the standout insights:
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Leading Indicators Matter: The report highlights significant early signals such as engaged visits and branded search impressions that serve as valuable predictors of business success. These metrics tend to respond quickly to brand campaigns, generating insights that forecast future results reliably.
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Consistency is Key: Companies that commit to a consistent brand investment strategy have demonstrated year-over-year improvements in AOV. Conversely, brands that limit their spending to less than 5% of their budget frequently experience declines in this metric.
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Emerging Channels Drive Demand: Platforms like TikTok, YouTube, and Snapchat have shown substantial influence on leading indicators. For example, Snapchat has achieved a remarkable 103% year-over-year growth in engaged sessions, while TikTok has contributed to a 40% spike in branded search activity. This highlights the importance of harnessing innovative channels for brand visibility.
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Measurable Returns: Brands that allocate more than 5% of their budget towards awareness and consideration strategies report return on advertising spend (ROAS) increase by up to 218%. This clear link between investment and return is a game-changer for marketing strategies.
The Causal Power of the Glow Report
The Glow Report utilizes Bayesian network modeling, allowing marketers to view the causal relationships between their brand investments and business performance. This offers a compelling narrative beyond mere correlations, providing the concrete proof marketers need to justify expenditures to stakeholders, especially CFOs and CEOs.
Sam Carter, CEO of Fospha, emphasized the need for this innovative approach: "Marketers have historically known that brand investment leads to long-term growth. However, demonstrating this impact, particularly to C-suite executives, has always been a challenge. The Glow Report is designed to highlight the leading signals that connect current brand spending with future business success, thereby instilling confidence in marketing investments."
Real-World Impacts: The Case of Sweaty Betty
An exemplary case showcased in the report is that of Sweaty Betty, which implemented Fospha's methodologies and witnessed a 2.3% uplift in AOV amongst new customers following a brand campaign's launch. Jon Grail, the Director of Growth at Sweaty Betty, noted, "Glow was pivotal in understanding the shifts in AOV that we previously couldn’t explain. It has significantly influenced our decision-making process regarding future AOV-driving strategies."
Conclusion
Fospha’s groundbreaking Glow Report serves as a crucial tool for marketers looking to reinforce their strategies with data-backed evidence. The findings underscore not only the importance of brand investment but also the need to track and leverage leading indicators effectively. With the insights provided, brands can drive stronger performance and remain competitive in the ever-evolving market landscape.
Marketers looking to deepen their understanding of this crucial area can access a free copy of the Glow Report
here.
Fospha continues to empower brands with advanced marketing measurement solutions, ensuring businesses adapt successfully to changes in data privacy and visibility dynamics.