The Right Way to Build a Brand
Over a century ago, John Wanamaker famously remarked, “Half the money I spend on advertising is wasted. The trouble is, I don’t know which half.”
This sentiment has resonated through the years, highlighting the challenge of proving the effectiveness of advertising investments. Despite significant resources spent on testing advertising copy and measuring impact, marketers still struggle to justify their advertising budgets.
This challenge has grown with the rise of online advertising and “performance marketing,” which targets capturing and converting potential demand already present at the top of a brand’s sales funnel. Unlike brand advertising, which aims to build awareness and loyalty, performance marketing provides immediate, measurable returns, making it an attractive alternative. The difficulty of linking brand advertising spend to positive financial outcomes leaves many brand builders grappling to justify their investments.
However, recent insights from the World Advertising Research Centre (WARC) provide a clear rationale for brand building. Data from WARC shows that successful brand building hinges on making a clear, specific promise to the customer that can be demonstrably fulfilled. Advertising that makes such a promise tends to outperform campaigns that do not, even if the latter create greater name awareness. This insight offers a framework for organizing a company’s activities and making wise advertising investments.
The Power of Promises
A promise creates a relationship between the promiser and the recipient. When fulfilled, it builds trust and results in a valuable connection. Research confirms that making a promise and delivering on it has a greater positive impact than simply providing a favor or service.
Consider three promises from competitors in the insurance industry: Allstate ’s “You’re in good hands,” Nationwide ’s “Nationwide is on your side,” and GEICO ’s “15 minutes could save you 15%.” Only Geico’s promise is direct and verifiable, creating a connection based on the specific, measurable benefit of saving 15% in just 15 minutes. Allstate and Nationwide imply benefits about themselves rather than the customer, lacking the verifiability that builds trust.
Following the above, researchers analyzed data from over 2,000 campaigns entered into WARC competitions between 2018 and 2022, classifying them based on whether they made an explicit and verifiable promise to customers. About 60% did not, while the remainder did.
The Impact of Customer Promises
Customer promise (CP) campaigns outperformed other campaigns across most measures. For example, 56% of CP campaigns reported improvements in brand perception, brand preference, and purchase intent, compared to 38% of non-CP campaigns. Market penetration increased in 45% of CP campaigns versus 38% of other campaigns, and market share increased in 27% of CP campaigns versus 17% of others. CP campaigns also outperformed non-CP campaigns in WARC’s hierarchy of performance, particularly at higher levels of success.
Types of Customer Promises
Minor categories include value for money (5%), sustainability (4%), and making amends for prior failures (2%).
Features of Attractive Promises
Successful campaigns share three features:
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Integrating Customer Promises into Strategy
A customer promise can do more than enhance advertising effectiveness; it can serve as a strategic anchor, guiding all aspects of a company’s operations. Here’s how:
Conclusion
Building a brand the right way involves making a clear, specific, and deliverable promise to customers. This approach not only enhances the effectiveness of advertising campaigns but also serves as a strategic anchor, aligning a company’s efforts towards creating and delivering value. By focusing on customer promises, brands can build trust, foster loyalty, and achieve enduring success in a competitive marketplace.
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