Brand building and the return on the investment it takes to build a brand are, to a great degree, difficult things to measure. They can be a bit elusive and hard to define. The measurement involves participation in and understanding of a process that takes place over time, utilizing and considering numerous variables and methods to create a sense of familiarity, awareness and trust in a product or brand name. *Note the phrase “over time.”
There are some seemingly lucky dogs that hit on an overnight success, but those instances are rare, and most often only have the appearance of overnight success. The behind the scenes relentless messaging, marketing, PR, promotion and brand building work that takes place is usually not visible to the naked eye. And it really shouldn’t be.
Patience is key here. Focusing too heavily on tangible and quick ROI, dollar for dollar is futile. Investing in a promotional campaign that sends traffic to your site, starts people talking on the internet and elsewhere about your brand, increasing your Google ranking, getting your brand more attention from other media and other venues, though it may not seem like a strong dollar for dollar return, one has to consider what awareness is worth. When does the dollar return come from a promotional investment? Maybe not for months or even longer. What will greater brand awareness lead to? Customer trust and loyalty, new business, and more sales, but it most likely will not be right away. To expect to pay a dollar for promotional work and the next day get two dollars back is unrealistic, but that oftentimes is the expectation when a client asks about ROI.
Data is useful, no doubt about that, but data can be deceiving. If a promotional campaign does not immediately and directly produce sales, but does drive traffic and produce positive awareness, is that considered to be a poor return on investment? I would argue that ROI doesn’t necessarily have to translate directly to dollars out vs. dollars back in. The return may not come in ways that can easily be counted. The return can come in ways that are impossible to measure. It can come from a positive consumer feeling about and recognition of a brand, trust in a product, understanding of and connection to what the brand stands for and what a company is all about. All of that has to come before many consumers will be willing to spend one penny to buy. How do you measure and value the various elements of ROI?